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Prepare Multiple-step income statement.
Shown below is information related to Farr Company.
Retained earnings, 31st December, 2010 $ 650,000Sales 1,400,000Selling and administrative expenses 240,000Hurricane loss (pre-tax) on plant (extraordinary item) 290,000Cash dividends declared on common stock 33,600Cost of goods sold 780,000Gain resulting from computation error on depreciation charge in 2009 (pre-tax) 520,000Other revenue 120,000Other expenses 100,000
Instructions
Make in good form a multiple-step income statement for the year 2011. Suppose a 30% tax rate and that 80,000 shares of common stock were outstanding in the year
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