Presented below is pre-tax financial information of the Mickey Corporation for 20X8.
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Cost of goods sold..........................................................................
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21,000,000
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Dividends declared on common stock.....................................
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230,000
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Dividends declared on preferred stock.....................................
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80,000
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Gain on the sale of investments (normal recurring).............
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110,000
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Interest revenue.................................................................................
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70,000
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Loss due to flood damage (unusual & infrequent)................
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312,500
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Loss on disposal of retail division..............................................
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750,000
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Loss on operations of retail division.........................................
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1,150,000
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Sales .....................................................................................................
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30,000,000
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Selling and administrative expenses............................................
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5,500,000
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Write-off of goodwill......................................................................
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520,000
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|
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Federal income tax rate for 20X8................................................
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40.0%
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Mickey Corporation decided to discontinue its retail operations and to retain its manufacturing operations. On August 15, Mickey sold the retail operations to Schoen Company. During 2008, there were 250,000 shares of common stock outstanding all year.
Required:Prepare a multiple-step income statement for the year 20X8 and be sure to include earnings per share.