Shown below is an income statement for 2010 that was prepared by a poorly trained bookkeeper of Howell Corporation.

Howell Corporation

INCOME STATEMENT

December 31, 2010

Sales revenue $960,000

Investment revenue 4,500

Cost of merchandise sold (409,500)

Selling expenses (150,000)

Administrative expense (210,000)

Interest expense (15,000)

Income before special items 180,000

Special items

Loss on disposal of a component of the business (45,000)

Major casualty loss (extraordinary item) (60,000)

Net federal income tax liability (18,750)

Net income $ 56,250

Required

Prepare a multiple-step income statement for 2010 for Howell Corporation that is presented in accordance with generally accepted accounting principles (including format and terminology). Howell Corporation has 50,000 shares of common stock outstanding and has a 25% federal income tax rate on all tax related items. Round all earnings per share figures to the nearest cent.