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Below are selected financial items from Jeffers Inc. for the year ending December 31, 2020. Net Sales Selling Expense Cost of Goods Sold Loss on
Below are selected financial items from Jeffers Inc. for the year ending December 31, 2020. Net Sales Selling Expense Cost of Goods Sold Loss on disposal of Beauty Products Line (before taxes) Administrative Expenses Interest Expense Unrealized Holding Gain (before taxes) Dividends (on Common Stock) Loss due to flood damage 760,000 91,700 535,000 15,000 17,050 6,500 25,000 10,000 30,000 Additional information: During 2020, Jeffers Inc. decided to discontinue its beauty products line to focus on other major product lines. In 2020, the beauty products line produced $4,000 in income before taxes prior to the actual disposal. This income is not included in the schedule above. Debt In the schedule above, the Unrealized Holding Gain (before taxes) is for an Investment Securities (available-for-sale). The effective tax rate is 20% and 40,000 shares of common stock were outstanding all year. Required: a) Prepare a multi-step income statement (in good form). Hint: do not forget the required earnings per share disclosure(s). b) Prepare a separate Statement of Comprehensive Income (in good form) beginning with the net income figure from part a
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