Given: Information for Corona Co. (be careful with * items. Should they be ignored? Should they be pre or post tax? What is the rule or formula?)

Sales revenue 3,200,000

Selling and administrative expenses 580,000

*Discontinued operations loss (pre-tax) 580,000

*Cash dividends declared on common stock 67,200

Cost of goods sold 1,760,000

*Gain resulting from computation error on depreciation charge in 2019 (pre-tax) 1,040,000

Other revenue 240,000

Other expenses 200,000

Instructions

Prepare in good form a multiple-step income statement for the year 2021. Assume a 15% tax rate and that 100,000 shares of common stock were outstanding during the year.