The accountant of the axel corporation


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.)

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