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Problem #2 (13 points) Prepare a multi-step income statement (using good form) for the Christensen Corporation. Christensen Corporation had the following items on Dec. 31,
Problem \#2 (13 points) Prepare a multi-step income statement (using good form) for the Christensen Corporation. Christensen Corporation had the following items on Dec. 31, 2021, prior to closing entries (note this is a partial list of all accounts in the adjusted trial balance): The appropriate tax rate for all income statement items is 30% for all items. (1) You have discovered that for the years 2020, 2021, Christensen Corporation's bookkeeper erroneously computed depreciation of a building. The correct amount of depreciation expense was $80,000 per year, but the bookkeeper recorded $50,000. Depreciation Expense is shown as part of Administrative Expenses. (2) The company discontinued a business segment. The net loss during the year was $80,000 before taxes, and the company disposed of assets with a book value of $200,000 and a fair value of $150,000. It does qualify for treatment as a discontinued operations. (3) The company had 1,000,000 shares of stock outstanding during the year. Show EPS for all appropriate amounts
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