41. Multiple-step income statement.

Presented below is information related to Farr Company.

Retained earnings, December 31, 2010	$ 650,000
Sales	1,400,000
Selling and administrative expenses	240,000
Hurricane loss (pre-tax) on plant (extraordinary item)	290,000
Cash dividends declared on common stock	33,600
Cost of goods sold	780,000
Gain resulting from computation error on depreciation charge in 2009 (pre-tax)	520,000
Other revenue	120,000
Other expenses	100,000

Instructions

Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year.