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Lancet Corporation prepared the following Income Statement for review by its auditor: Lancet Corporation Income Statement For the year ended 12/31/20 Sales Cost of goods

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Lancet Corporation prepared the following Income Statement for review by its auditor: Lancet Corporation Income Statement For the year ended 12/31/20 Sales Cost of goods sold Gross profit Operating expenses Income before income taxes Income tax expense (21%) Net income $8,300,000 4.700,000 3,600,000 2.300.000 1,300,000 273.000 $1,027.000 Lancet Corporation has had 250,000 shares of common stock outstanding all year. Lancet has no preferred stock. Included in cost of goods sold is an additional cost of $320,000 due to an unavoidable, but brief, employee strike. Operating expenses include: (a) additional depreciation expense of $24,000 due to a decision to decrease the estimated useful life of certain equipment (b) interest expense of $10,000 on a short-term note payable, and (c) a $50,000 write-down due to impairment of a trademark whose defense was unsuccessful On August 15, Lancet decided to spin-off its children's clothing division, which the auditor determines is a separate business segment. Because of this decision, Lancet omitted the division from the income statement. The division's operating loss up to 8/15/20 was $180,000. The division lost an additional $50,000 before its assets were completely sold on November 3, 2020, at a net gain of $90,000. Required: Prepare the corrected multi-step Income Statement for Lancet that would be prepared by the auditor in accordance with GAAP. Lancet Corporation prepared the following Income Statement for review by its auditor: Lancet Corporation Income Statement For the year ended 12/31/20 Sales Cost of goods sold Gross profit Operating expenses Income before income taxes Income tax expense (21%) Net income $8,300,000 4.700,000 3,600,000 2.300.000 1,300,000 273.000 $1,027.000 Lancet Corporation has had 250,000 shares of common stock outstanding all year. Lancet has no preferred stock. Included in cost of goods sold is an additional cost of $320,000 due to an unavoidable, but brief, employee strike. Operating expenses include: (a) additional depreciation expense of $24,000 due to a decision to decrease the estimated useful life of certain equipment (b) interest expense of $10,000 on a short-term note payable, and (c) a $50,000 write-down due to impairment of a trademark whose defense was unsuccessful On August 15, Lancet decided to spin-off its children's clothing division, which the auditor determines is a separate business segment. Because of this decision, Lancet omitted the division from the income statement. The division's operating loss up to 8/15/20 was $180,000. The division lost an additional $50,000 before its assets were completely sold on November 3, 2020, at a net gain of $90,000. Required: Prepare the corrected multi-step Income Statement for Lancet that would be prepared by the auditor in accordance with GAAP

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