The following data were selected from the records of Xtreme World Inc. for the current fiscal year ended June 30, 2008:

{Instructions}
Prepare a multiple-step income statement, concluding with a section for earnings per share in the form illustrated in this chapter. There were 5,000 shares of common stock (no preferred) outstanding throughout the year. Assume that the loss on the condemnation of land is an extraordinary item.obj. 5

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Advertising expense Cost of merchandise sold Depreciation expense-office equipment Depreciation expense-store equipment Gain on discontinued operations Income tax: Applicable to continuing operations Applicable to gain on disposal of business segment. Applicable to loss on condemnation of land (reduction) Insurance expense Interest expense Loss from condemnation of land $ 57,000 345,000 16,000 45,000 38,000 10,500 11,400 7,200 9,000 18,000 24,000