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The following pretax amounts are taken from the accounts of J&J Inc. at December 31, 2020, its annual year-end ($ thousands). Assume an average 25% tax rate on all items.
ciies revenue
4414,000
Cost of goods sold
272,000
Selling and administrative expenses
144,000
Gain on sale of land held for speculation
48,000
Prior period adjustment, correction of error from 2019, pretax (a debit)
25,600
Interest expense
3,200
Cash dividends declared and paid
8,000
Retained earnings, December 31, 2019
164,800
Common stock, outstanding.
25,000 shares
Required
Question a. Prepare a multiple-step income statement, including intraperiod income tax allocation and EPS disclosure.
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