Prepare a multiple-step income statement for 2013 applying

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Reference no: EM13577637

Extraordinary gain

Net Income

The following incorrect income statement was prepared by the accountant of the Axel Corporation:

AXEL CORPORATION Income Statement For the Year Ended December 31, 2013
Revenues and gains:
Sales			$	640,000
Interest and dividends				35,000
Gain from litigation settlement				85,000

Total revenues and gains				760,000
Expenses and losses:
Cost of goods sold	$	345,000
Selling expenses		62,000
Administrative expenses		84,000
Interest		30,000
Restructuring costs		59,000
Income taxes		72,000

Total expenses and losses				652,000

Net Income			$	108,000

Earnings per share			$	1.08

Required:
Prepare a multiple-step income statement for 2013 applying generally accepted accounting principles. The income tax rate is 40%. The gain from litigation settlement is considered an unusual and infrequent event and the amount is material. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)

Reference no: EM13577637

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