P 4-4 page 180-181

The following items are from Taperline Corporation on December 31, 2012. Assume a flat 40% corporate tax rate on all items,

including the casualty loss.

Sales $670,000

Rental income 3,600

Sales	$670,000
Rental income	$3,600
Gain on the sale of fixed assets	$3,000
General and administrative expenses	$110,000
Selling expenses	$97,000
Interest expense	$1,900
Depreciation for the period	$10,000
Extraordinary item (casualty loss-pretax)	$30,000
Cost of sales	$300,000
Common stock (30,000 shares outstanding)	$150,000

Required:

a. Prepare a single-step income statement for the year ended December 31, 2012. Include earnings per share for earnings before extraordinary items and net income.

b. Prepare a multiple-step income statement. Include earnings per share for earnings before extraordinary items and net income.