The following pre-tax information is taken from Trader J's Corp.'s adjusted trial balance as of December 31, 2020, its annual closing.

Sales revenue, net	$ 950,000
Gain on sale of investment	8,000
depreciation expense	25,000
Selling expenses	140.000
General and adminsitrative expenses	92,300
rental income	18,000
investment income	7,000
Interest expenses	9,000
Recovery of prior expropriation loss	80.000
Loss on sale of long-term investments	10,000
cost of goods sold	550.000
Loss due to casualty	30,000
Average income tax rate on all items	25%
common shares outstanding	40,000 shares

to. Prepare a one-step income statement that includes earnings per share disclosures.

• Note: Record Income and Gains and Expenses and Losses in order from the highest dollar amount to the lowest dollar amount.
• Note: Do not use negative signs with your answers.
• Note: Round the earnings per share amount to two decimal places.

Merchant J Corporation
Statement of income
For the year ended December 31, 2020
income and earnings
Sales revenue, net	Answer
Gain from recovery of loss from expropriation	Answer
rental income	Answer
Gain on sale of investment	Answer
investment income	Answer
Total revenue and earnings	Answer
expenses and losses
cost of goods sold	Answer
Selling expenses	Answer
General and adminsitrative expenses	Answer
Loss due to casualty	Answer
depreciation expense	Answer
Loss on sale of long-term investments	Answer
Interest expenses	Answer
Total expenses and losses	Answer
Profit before income taxes	Answer
Income from tax expenses	Answer
Net Income	Answer
earnings per share	Answer

b. Prepare a multi-step income statement that includes earnings per share disclosures. Assume that rental income is non-operating.

• Note: Record Other Income and Gains and Other Expenses and Losses in order from the highest dollar amount to the lowest dollar amount.
• Note: Do not use negative signs with your answers.
• Note: Round the earnings per share amount to two decimal places.

Merchant J Corporation
Statement of income
For the year ended December 31, 2020
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense		Answer
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense		Answer
Gross profit		Answer
operating expenses
selling expenses	Answer
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense	Answer
depreciation expense	Answer
Total operating expenses		Answer
operating income		Answer
Other income and gains
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense	Answer
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense	Answer
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense	Answer
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense	Answer	Answer
Other expenses and losses
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense	Answer
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense	Answer
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense	Answer	Answer
Profit before income taxes		Answer
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense		Answer
Net Income		Answer
earnings per share		Answer