The following items were taken from the adjusted trial balance of the Bremeur Corp. on 31 December 20X5. Assume an average 25% income tax on all items (including the divestiture loss). The accounting period ends 31 December. All amounts given are pre-tax and subject to the same income tax rate. Bremeur had 40,000 shares outstanding at the beginning of the year. On 31 August 20X5, an additional 6,000 shares were issued; at the end of 20X5, 46,000 shares were outstanding. Sales revenue from continuing operations Revenue in business segment being discontinued $720, 200 85,000 3,400 1,400 3,000 146,000 120,000 83,000 2,500 7,000 11,000 13,000 340,000 Rent revenue Interest revenue Gain on sale of investments Distribution expenses General and administrative expenses Operating expenses in business segment being discontinued Interest expense Depreciation and amortization Settlement of legal claim agains the company Asset impairments, discontinued operation Cost of goods sold Required: 1. Prepare a single-step income statement. (Round "Earnings per share" answers to 2 decimal places. Loss amounts should be indicated by a minus sign.) Answer is complete but not entirely correct BREMEUR CORPORATION Income Statement For Year Ended 31 December 20X5 (in Canadian dollars) Revenues and gains: $ 720,200 Sales revenue 3,400 Rent revenue Interest revenue 1,400 Gain on sale of investments 3,000 Total revenues and gains 728,000 Expenses: Distribution expenses 146,000 General and administrative expenses 120,000 Depreciation and amortization 7,000 Cost of goods sold 340,000 Settlement of legal claim against the company 11,000 Interest expense 2,500 Income tax expense 25,375 Total expenses 651,875 Income before discontinued operation 76,125 Loss from discontinued operations Net income Earnings per share: 8,250 67,875 Continuing operation EPS 1.81 Discontinued operation EPS 0.20 Total earnings per share 1.61 2. Prepare a multiple-step income statement. (Round "Earnings per share" answers to 2 decimal places.) Answer is complete and correct. BREMEUR CORPORATION Income Statement Year Ended 31 December 20X5 (in Canadian dollars) Sales revenue Cost of goods sold 720,200 340,000 Gross margin on sales 380,200 Operating expenses: Distribution expenses S 146,000 General and administrative expenses 120,000 7,000 Depreciation and amortization Total operating expenses Income from operations Other revenues (expenses) 273,000 107,200 Rent revenue 3,400 Interest revenue 1,400 Gain on sale of investments 3,000 Interest expense 2,500 Total Other Revenue (Expenses) Income before unusual item, income taxes and discontinued operation Unusual item: 5,300 112,500 Settlement of legal claim against the company 11,000 Earnings before income taxes and discontinued operation 101,500 Income tax on continuing operation 25,375 Earnings from continuing operation Loss on discontinued operation Net income Earnings per share: 76,125 8,250 67,875 Continuing operation EPS Discontinued operation EPS 1.81 0.20 Total earnings per share 1.61