2) 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				$	780,000
Interest revenue					51,000
Gain on sale of investments					98,000
Total revenues and gains					929,000
Expenses and losses:
Cost of goods sold	$	420,000
Selling expense		78,000
Administrative expense		98,000
Interest expense		35,000
Restructuring costs		74,000
Income tax expense		56,000
Total expenses and losses					761,000
Net Income				$	168,000
Earnings per share				$	1.68

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.)

3) Esquire Comic Book Company had income before tax of $1,550,000 in 2021 before considering the following material items:

1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $395,000. The division generated before-tax income from operations from the beginning of the year through disposal of $610,000.
2. The company incurred restructuring costs of $60,000 during the year

Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)

On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the business for $10.8 million. The robotics business segment qualifies as a component of th to GAAP. The book value of the assets of the segment was $7.9 million. The income fron segment during 2021 was $4.9 million. Pretax income from continuing operations for the million. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with income from co before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative a indicated with a minus sign. Enter your answers in whole dollars and not in millions. F $4,000,000 rather than $4.) Answer is not complete. REVOLUTIONARY INDUSTRIES Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations before income taxes Income tax expense Loss from operations of discontinued component $ Income from continuing operations Discontinued operations: Income tax expense Income from operations of discontinued component Net income (loss) 15 Required: Prepare a multiple-step income statement for 2021 applying generally accep The income tax rate is 25%. (Amounts to be deducted should be indicated EPS answer to 2 decimal places.) $ Answer is not complete. AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Sales revenue Cost of goods sold Gross profit Operating expenses: Selling expense $ 78,000 Administrative expense 98,000 Restructuring costs 74,000 780,000 420,000 360,000 250,000 110,000 Total operating expenses Operating income Other income (expense): Gain on sale of investments Interest expense 98,000 (35,000) Total other income, net Income before income taxes Income tax expense Net income Earnings per share 63,000 173,000 56,000 117,000 1.68 $ S X Answer is not complete. ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations Discontinued operations: Income tax expense Income from operations of discontinued component (53,750) 215,000 Income on discontinued operations Net income (loss) S 161,250 26,875