Audio Affection Inc. sells automotive and home stereo equipment. It has 50,000 shares of $100 par common stock outstanding and 10,000 shares of $2, $100 par cumulative preferred stock outstanding as of December 31, 2008. List the errors you find in the following income statement for the year ended December 31,2008.

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Audio Affection Inc. Income Statement For the Year Ended December 31, 2008 $967,000 578,000 5389,000 Net sales Operating expenses: Income from continuing operations before income tax . . .. Income tax expense .._. .. . Income from continuing operations ....142,000 269,000 $120,000 48,000 $ 72,000 (24,000) Income before condemnation of land, restructuring charge and discontinued operations... 48,000 Extraordinary items: Gain on condemnation of land, net of applicable income tax of $20,000 Restructuring charge, net of applicable income tax of $8,000 30,000 (12,000) Loss on discontinued operations (net of applicable income tax of $15,000) (22,500) 43,500 Net income Ear nings per common share S 1.44 (048) 0.96 Income before extraordinary item and discontinued operations..... Extraordinary items: Gain on condemnation of land 0.60 (0.24) (0.45) Net income 0.87