2020 Spring ACTG 321 Assigned HW2: Income Satement Due date: 1/29 ( Wed.) in the beginning of class s homework assignment accounts for 5 points. No point will be given if it is incomplete or uue, in addition, no point will be given if most of your work is incorrect or the format is not followed. One point will be deducted per error. ed below is information related to ColorCity Inc. for year of 2019 (1/1/2019-12/31/2019). Income from operations of discontinued food departiment (pre-tax) Selling and administrative expenses Interest expenses Net Sales Dividends-Common stock Interest revenues Loss on disposal of discontinued food department (pre-tax) Cost of goods sold Dividends-Preferred stock Retained earnings, 1/1 60,000 1,114,000 140,000 3.790,000 56.000 260,000 120,000 1,780,000 125,000 630,000 Instructions 1. Prepare in good form a multiple-step income statement for the year 2019 for ColorCity Inc. Assume a 30% tax rate. Include an appropriate heading for the statement. All subtotals must be titled appropriately (e.g., gross profit, income from operation, etc.). Please note, the items given above are in scrambled order and not all items should be reported on an income statement. Illustration 4-19 (Poquito Industries Inc.) on the slide provides a good example of multi-step income statement. Please make your handwriting clear and neat. 2. Assume that 140,000 shares of common stock were outstanding during the year. Calculate earnings per share based on the net income figure at the bottom of the statement (round to two decimals). Show your work in addition to the