Question
The adjusted trial balance of Cicero Enterprises included the following accounts as of Dec. 31, 2014: Debits Credits Sales revenue 1,800,000 Interest revenue 80,000 Unearned
The adjusted trial balance of Cicero Enterprises included the following accounts as of Dec. 31, 2014:
Debits Credits
Sales revenue 1,800,000
Interest revenue 80,000
Unearned revenue 60,000
Gain on sale of land (infrequent and not related to cable TV division) 50,000
Cost of goods sold 1,200,000
Salaries and wages expense 160,000
Prepaid expense 450,000
Depreciation expense 150,000
Interest expense 40,000
Marketing and administrative expenses 50,000
Income tax expense 90,000
In addition, the company has decided to sell its cable TV division and the division is held for sale at year-end. The sale is estimated to generate a loss before tax of $30,000. This division accounted for 20% of the entire companys main operating activities (not its peripheral activities). Cicero Enterprises had 200,000 shares of stock outstanding throughout the year. You have enough information to figure out Cicero Enterprises tax rate.
Required: Prepare a multiple-step income statement.
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