Question
Alpha Surrey Inc. Income Statement December 31, 2020 Sales revenue $975,000 Investment revenue 19,500 Cost of merchandise sold (408,500) Selling expenses (155,000) Administrative expenses (215,000)
Alpha Surrey Inc.
Income Statement
December 31, 2020
Sales revenue $975,000
Investment revenue 19,500
Cost of merchandise sold (408,500)
Selling expenses (155,000)
Administrative expenses (215,000)
Interest expense (13,000)
Income before special items 203,000
Special items
Loss on disposal of a segment of the business (30,000)
Major fire loss (80,000)
Net income tax liability (27,900)
Net income $ 65,100
Instructions
Prepare a multi-step Income Statement based on the data provided above. Assume that Alpha Surrey has 50,000 common shares outstanding and the tax rate is 25% on the tax-related items.
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