Make a multiple-step income statement for the year

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Question - The ledger of Ivanhoe Corporation at November 30, 2021, contains the following summary data:

Cash dividends-common

$67,000

Operating expenses

$1,114,000

Cash dividends-preferred

25,000

Other comprehensive income-loss on
equity investments (before income tax)

84,000

Common shares

322,000

Rent revenue

52,000

Cost of goods sold

7,320,000

Preferred shares ($5 noncumulative)

394,000

Depreciation expense

354,000

Retained earnings, December 1, 2020

745,000

Sales

9,024,000

 


Your analysis reveals the following additional information:

1. The company has a 25% income tax rate.

2. The communications devices division was discontinued on August 31. The profit from operations for the division up to that day was $17,800 before income tax. The division was sold at a loss of $77,000 before income tax.

3. There were 200,000 common and 5,000 preferred shares issued on December 1, 2020, with no changes during the year.

Required - Make a multiple-step income statement for the year.

Reference no: EM133176817

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