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Presented below is information related to 2020 for Ivanhoe Company.

Retained earnings, December 31, 2019		$649,000
Sales revenue		1,513,000
Selling and administrative expenses		231,000
Discontinued operations loss (pre-tax)		283,000
Cash dividends declared on common stock		33,600
Cost of goods sold		853,000
Gain discovered in 2020, from error on depreciation charge in 2018 (pre-tax)		514,000
Other revenue		116,000
Other expenses		110,000

Prepare in good form a multiple-step income statement for the year 2020. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. (Round per share values to 2 decimal places, e.g. $1.58.)

Ivanhoe Company INCOME STATEMENT                                                           For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020December 31, 2020
Income TaxesOther ExpensesNet Income / (Loss)Discontinued Operations Loss, Net of TaxGross Profit / (Loss)Other RevenueCost of Goods SoldIncome from Continuing OperationsIncome Before Income TaxesIncome from OperationsPer Share of Common StockSelling and Administrative ExpensesSales Revenue		$
Discontinued Operations Item, Net of TaxSales RevenueNet Income / (Loss)Selling and Administrative ExpensesCost of Goods SoldIncome TaxesIncome Before Income TaxesDiscontinued Operations Income / (Loss)Gross Profit / (Loss)Other ExpensesOther RevenuePer Share of Common StockIncome from Continuing OperationsIncome from Operations
Per Share of Common StockNet Income / (Loss)Discontinued Operations Loss, Net of TaxSelling and Administrative ExpensesIncome from Continuing OperationsSales RevenueIncome Before Income TaxesOther ExpensesGross Profit / (Loss)Other RevenueIncome TaxesCost of Goods SoldIncome from Operations
Per Share of Common StockOther RevenueSales RevenueOther ExpensesCost of Goods SoldSelling and Administrative ExpensesDiscontinued Operations Loss, Net of TaxIncome from OperationsGross Profit / (Loss)Income from Continuing OperationsIncome Before Income TaxesIncome TaxesNet Income / (Loss)
Sales RevenueIncome TaxesGross Profit / (Loss)Net Income / (Loss)Income from Continuing OperationsDiscontinued Operations Loss, Net of TaxIncome from OperationsOther RevenueOther ExpensesCost of Goods SoldSelling and Administrative ExpensesPer Share of Common StockIncome Before Income Taxes
Discontinued Operations Loss, Net of TaxGross Profit / (Loss)Net Income / (Loss)Other ExpensesIncome TaxesSelling and Administrative ExpensesPer Share of Common StockIncome from Continuing OperationsCost of Goods SoldOther RevenueIncome from OperationsIncome Before Income TaxesSales Revenue
Discontinued Operations Loss, Net of TaxIncome from Continuing OperationsPer Share of Common StockNet Income / (Loss)Selling and Administrative ExpensesSales RevenueOther ExpensesIncome from OperationsIncome TaxesIncome Before Income TaxesCost of Goods SoldOther RevenueGross Profit / (Loss)
Income from OperationsOther ExpensesOther RevenueGross Profit / (Loss)Discontinued Operations Loss, Net of TaxSales RevenuePer Share of Common StockIncome Before Income TaxesIncome TaxesCost of Goods SoldNet Income / (Loss)Income from Continuing OperationsSelling and Administrative Expenses
Net Income / (Loss)Other ExpensesPer Share of Common StockCost of Goods SoldOther RevenueIncome from OperationsIncome from Continuing OperationsIncome TaxesSelling and Administrative ExpensesIncome Before Income TaxesDiscontinued Operations Loss, Net of TaxGross Profit / (Loss)Sales Revenue
Selling and Administrative ExpensesDiscontinued Operations Loss, Net of TaxIncome Before Income TaxesPer Share of Common StockNet Income / (Loss)Sales RevenueIncome from OperationsIncome from Continuing OperationsCost of Goods SoldOther RevenueIncome TaxesOther ExpensesGross Profit / (Loss)
Net Income / (Loss)Income from OperationsGross Profit / (Loss)Sales RevenuePer Share of Common StockDiscontinued Operations Loss, Net of TaxCost of Goods SoldOther ExpensesIncome TaxesIncome from Continuing OperationsIncome Before Income TaxesSelling and Administrative ExpensesOther Revenue
Gross Profit / (Loss)Income TaxesSales RevenueCost of Goods SoldPer Share of Common StockIncome Before Income TaxesOther RevenueNet Income / (Loss)Discontinued Operations Loss, Net of TaxSelling and Administrative ExpensesOther ExpensesIncome from OperationsIncome from Continuing Operations		$
Sales RevenueIncome TaxesDiscontinued Operations Loss, Net of TaxNet Income / (Loss)Income Before Income TaxesOther ExpensesOther RevenueIncome from OperationsIncome from Continuing OperationsSelling and Administrative ExpensesCost of Goods SoldGross Profit / (Loss)Per Share of Common Stock:
Discontinued Operations Loss, Net of TaxIncome from OperationsIncome from Continuing OperationsSales RevenueGross Profit / (Loss)Cost of Goods SoldIncome TaxesNet Income / (Loss)Per Share of Common StockOther ExpensesIncome Before Income TaxesSelling and Administrative ExpensesOther Revenue		$
Other ExpensesIncome from Continuing OperationsGross Profit / (Loss)Per Share of Common StockCost of Goods SoldNet Income / (Loss)Selling and Administrative ExpensesIncome from OperationsIncome Before Income TaxesDiscontinued Operations Loss, Net of TaxIncome TaxesSales RevenueOther Revenue
Income Before Income TaxesPer Share of Common StockOther ExpensesSelling and Administrative ExpensesOther RevenueDiscontinued Operations Loss, Net of TaxIncome from OperationsCost of Goods SoldIncome TaxesIncome from Continuing OperationsGross Profit / (Loss)Net Income / (Loss)Sales Revenue		$

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Answer 1

Ivanhoe Company
Income Statement
For the Year Ended December 31, 2020
Sales revenue		1,513,000
Cost of goods sold		-853,000
Gross profit		660,000
Operating expenses:
Selling and administrative expenses	-231,000
Total Operating expenses		-231,000
Operating Profit		429,000
Other revenues		116,000
Other expenses		-110,000
Income before taxes		435,000
Income tax ( Income before taxes x tax rate, 435,000 x 30%)		-130,500
Income from continued operations		304,500
Discontinued operations:
Loss on operation of discontinued operations net of taxes {283,000- (283,000 x 30%)}		-198,100
Net Income		106,400
Earning per share ( Net Income / Number of common shares) ( 106,400/80,000)		$1.33

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