Question 1:

The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2021 and 2020:

		2021			2020
Sales revenue	$	15,900,000		$	10,500,000
Cost of goods sold		9,650,000			6,450,000
Gross profit		6,250,000			4,050,000
Operating expenses		3,560,000			2,960,000
Operating income		2,690,000			1,090,000
Gain on sale of division		690,000
		3,380,000			1,090,000
Income tax expense		845,000			272,500
Net income	$	2,535,000		$	817,500

On October 15, 2021, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualifies as a component of an entity as defined by GAAP. The division was sold on December 31, 2021, for $5,270,000. Book value of the divisions assets was $4,580,000. The divisions contribution to Jacksons operating income before-tax for each year was as follows:

2021	$445,000
2020	$345,000

Assume an income tax rate of 25%. Required: (In each case, net any gain or loss on sale of division with annual income or loss from the division and show the tax effect on a separate line.)

Assume that by December 31, 2021, the division had not yet been sold but was considered held for sale. The fair value of the divisions assets on December 31 was $3,990,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures.

Question 2:

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands):

Sales revenue	$	20,000	Cost of goods sold	$	11,500
Interest revenue		140	Selling and administrative expense		2,700
Interest expense		340	Restructuring costs		1,000

In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $1.8 million and a gain on disposal of the components assets of $2.4 million. 600,000 shares of common stock were outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25% on all items of income (loss). Required: Prepare a multiple-step income statement for 2021, including EPS disclosures. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands except earnings per share. Round EPS answers to 2 decimal places.)

Question 3:

The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2021, included the following accounts:

Account Title	Debits	Credits
Sales revenue		2,600,000
Cost of goods sold	1,540,000
Selling and administrative expense	436,000
Interest expense	54,000
Gain on debt securities		94,000

The gain on debt securities is unrealized and classified as other comprehensive income. The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 25%. There were 1,400,000 shares of common stock outstanding throughout 2021. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2021, including appropriate EPS disclosures. (Round EPS answer to 2 decimal places.)