Question One

Sally Corporation had the following account balances. 1) Please make an income statement using the multi-step approach with the information below. 2) Please calculate earnings per share as well.

Cost of Goods Sold	$1,400,000
Selling Expense	$244,000
Interest Revenue	$42,000
Administrative Expenses	$322,000
Income Tax Rate	22%
Common Stock Outstanding	110,000
Interest Expense	$25,000
Unrealized Gain on value of Patent	$100,000
Sales	2,400,000

Question Two

Discontinued Operations

Account	Amount
Income from Continued Operations	$5,000,000
Loss from disposal of business segment net of taxes	$260,000
Loss on operations of business segment net of taxes	$340,000
Outstanding Common Stock Shares	200,000