The following information was taken from the records of Vaughn Inc. for the year 2020: Income tax applicable to income from continuing operations $ 201,960; income tax applicable to loss on discontinued operations $ 27,540, and unrealized holding gain on available-for-sale securities (net of tax) $ 16,200.

Gain on sale of equipment		$ 102,600		Cash dividends declared		$ 162,000
Loss on discontinued operations		81,000		Retained earnings January 1, 2020		2,160,000
Administrative expenses		259,200		Cost of goods sold		918,000
Rent revenue		43,200		Selling expenses		324,000
Loss on write-down of inventory		64,800		Sales Revenue		2,052,000

Shares outstanding during 2020 were 100,000.

(a)

Prepare a single-step income statement (with respect to items in Income from operations). (Round earnings per share to 2 decimal places, e.g. 1.48.)

VAUGHN INC. Income Statement December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
Income From Continuing OperationsNet Income / (Loss)Discontinued OperationsTotal RevenuesRevenuesIncome from Operations
Inventory LossIncome TaxCost of Goods SoldIncome From Continuing Operations Before Income TaxPer Share of Common StockRent RevenueLoss on Discontinued OperationsSales RevenueSelling ExpensesAdministrative ExpensesGain on Sale of Equipment	$
Administrative ExpensesRent RevenueIncome TaxSelling ExpensesGain on Sale of EquipmentLoss on Discontinued OperationsPer Share of Common StockCost of Goods SoldIncome From Continuing Operations Before Income TaxInventory LossSales Revenue
RevenuesIncome From Continuing OperationsDiscontinued OperationsTotal RevenuesIncome from OperationsNet Income / (Loss)		$
ExpensesDiscontinued OperationsIncome from OperationsNet Income / (Loss)Income From Continuing OperationsTotal Expenses
Inventory LossLoss on Discontinued OperationsPer Share of Common StockIncome From Continuing Operations Before Income TaxIncome TaxCost of Goods SoldAdministrative ExpensesGain on Sale of EquipmentRent RevenueSelling ExpensesSales Revenue
Gain on Sale of EquipmentIncome TaxAdministrative ExpensesInventory LossSales RevenueLoss on Discontinued OperationsIncome From Continuing Operations Before Income TaxRent RevenueCost of Goods SoldSelling ExpensesPer Share of Common Stock
Gain on Sale of EquipmentAdministrative ExpensesSelling ExpensesCost of Goods SoldRent RevenueIncome TaxInventory LossSales RevenuePer Share of Common StockIncome From Continuing Operations Before Income TaxLoss on Discontinued Operations
Income from OperationsExpensesTotal ExpensesIncome From Continuing OperationsDiscontinued OperationsNet Income / (Loss)
Total ExpensesTotal RevenuesDiscontinued OperationsIncome from OperationsExpensesNet Income / (Loss)RevenuesIncome From Continuing Operations
Total RevenuesDiscontinued OperationsIncome from OperationsTotal ExpensesOther Revenues and GainsRevenuesIncome From Continuing OperationsExpensesNet Income / (Loss)
Loss on Discontinued OperationsCost of Goods SoldGain on Sale of EquipmentSelling ExpensesIncome TaxPer Share of Common StockIncome From Continuing Operations Before Income TaxSales RevenueRent RevenueAdministrative ExpensesInventory Loss
Income from OperationsOther Expenses and LossesRevenuesTotal ExpensesIncome From Continuing OperationsDiscontinued OperationsNet Income / (Loss)Total RevenuesExpenses
Income From Continuing Operations Before Income TaxPer Share of Common StockCost of Goods SoldIncome TaxSales RevenueInventory LossAdministrative ExpensesRent RevenueLoss on Discontinued OperationsGain on Sale of EquipmentSelling Expenses
Cost of Goods SoldPer Share of Common StockIncome From Continuing Operations Before Income TaxAdministrative ExpensesSales RevenueInventory LossIncome TaxRent RevenueGain on Sale of EquipmentLoss on Discontinued OperationsSelling Expenses
Loss on Discontinued OperationsSales RevenueCost of Goods SoldRent RevenueIncome From Continuing Operations Before Income TaxSelling ExpensesGain on Sale of EquipmentIncome TaxInventory LossPer Share of Common StockAdministrative Expenses
Total RevenuesOther Revenues and GainsDiscontinued OperationsIncome From Continuing OperationsNet Income / (Loss)Other Expenses and LossesExpensesIncome from OperationsRevenuesTotal Expenses
Total RevenuesIncome From Continuing OperationsDiscontinued OperationsIncome from OperationsTotal ExpensesExpensesRevenuesNet Income / (Loss)
Selling ExpensesIncome From Continuing Operations Before Income TaxCost of Goods SoldIncome TaxSales RevenueGain on Sale of EquipmentAdministrative ExpensesInventory LossLoss on Discontinued OperationsRent RevenuePer Share of Common Stock
AddLess: Selling ExpensesApplicable Income Tax ReductionAdministrative ExpensesInventory LossIncome From Continuing Operations Before Income TaxPer Share of Common StockRent RevenueLoss on Discontinued OperationsCost of Goods SoldGain on Sale of EquipmentSales Revenue
Net Income / (Loss)Total ExpensesDiscontinued OperationsExpensesRevenuesTotal RevenuesIncome from OperationsIncome From Continuing Operations		$
Rent RevenueCost of Goods SoldNet Income / (Loss)Income From Continuing OperationsIncome from OperationsPer Share of Common StockLoss on Discontinued Operations, Net of TaxSales RevenueSelling ExpensesAdministrative Expenses:
Income From Continuing OperationsIncome from OperationsLoss on Discontinued Operations, Net of TaxCost of Goods SoldSales RevenueNet Income / (Loss)Rent RevenueSelling ExpensesPer Share of Common StockAdministrative Expenses		$
Cost of Goods SoldSales RevenueSelling ExpensesIncome from OperationsNet Income / (Loss)Income From Continuing OperationsLoss on Discontinued Operations, Net of TaxPer Share of Common StockRent RevenueAdministrative Expenses
Cost of Goods SoldAdministrative ExpensesNet Income / (Loss)Sales RevenueSelling ExpensesRent RevenueIncome From Continuing OperationsLoss on Discontinued Operations, Net of TaxIncome from OperationsPer Share of Common Stock		$

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