Question

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

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

AXEL CORPORATION
Income Statement
For the Year Ended December 31, 2021
Revenues and gains:
Sales revenue $ 700,000
Interest revenue 43,000
Gain on sale of investments 90,000
Total revenues and gains 833,000
Expenses and losses:
Cost of goods sold $ 380,000
Selling expense 70,000
Administrative expense 90,000
Interest expense 27,000
Restructuring costs 66,000
Income tax expense 50,000
Total expenses and losses 683,000
Net Income $ 150,000
Earnings per share $ 1.50


Required:
Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
  

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