The following data were selected from the records of Xtreme World Inc. for the current fiscal year ended June 30, 2008:

Advertising expense ......................$ 57,000

Cost of merchandise sold .................... 345,000

Depreciation expense—office equipment .............. 16,000

Depreciation expense—store equipment ............... 45,000

Gain on discontinued operations .................. 38,000

Income tax:

Applicable to continuing operations ............... 10,500

Applicable to gain on disposal of business segment ......... 11,400

Applicable to loss on condemnation of land (reduction) ........ 7,200

Insurance expense ....................... 9,000

Interest expense ....................... 18,000

Loss from condemnation of land ................. 24,000

Loss from fixed asset impairment ................ $ 40,000

Miscellaneous administrative expense ............... 11,000

Miscellaneous selling expense .................. 14,000

Office salaries expense ..................... 70,000

Rent expense ........................ 25,000

Restructuring charge ..................... 50,000

Sales ............................ 865,000

Sales commissions expense .................. 130,000

Unrealized gain on temporary investments ............ 35,000

Instructions

Prepare a multiple-step income statement, concluding with a section for earnings per share in the form illustrated in this chapter. There were 5,000 shares of common stock (no preferred) outstanding throughout the year. Assume that the loss on the condemnation of land is an extraordinary item.