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Unformatted text preview: taxes for 2007 would have been $24,000 instead of $21,000. 4. Morton had 20,000 shares of common stock outstanding during 2007. Instructions Using the single-step format, prepare a corrected income statement, including the appropriate per share disclosures. Test Bank for Intermediate Accounting, Twelfth Edition 4 - 32 Solution 4-99 Morton Company Income Statement For the Year Ended December 31, 2007 Net sales $800,000 Costs and expenses: Cost of goods sold $640,000 Selling, general, and administrative expenses 63,000 Interest expense 10,000 Infrequent chargeloss on sale of investments 7,000 Total costs and expenses 720,000 Income before taxes and extraordinary item 80,000 Income taxes 24,000 Income before extraordinary item 56,000 Extraordinary loss Earthquake damage 10,000 Less applicable taxes 3,000 (7,000 ) Net income $ 49,000 Per share of common stock Income before extraordinary item $2.80 Extraordinary loss, net of tax (.35 ) Net income $2.45...
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- Spring '11
- Income Statement