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On the following page prepare a well-formatted multi-section income statement for the Fiona Company for the fiscal year ending December 31, 2020 from the data below. Use the entire figures as shown on your income statement. Note: For items in section 2 (Other Items) and section 4 (Below-the-line Items) use brackets if an item will have a negative impact on earnings. In section 1 individual items are not generally shown in brackets except for calculated margins or totals if negative. 1. Cost of Goods Sold amounted to $20,000. 2. Sale of equipment that had a historical cost of $1,400 had accumulated depreciation of $910 and was sold for $890. The tax rate related to such a transaction is 25%. 3. Non-taxable interest income on municipal bonds of $300 4. Sales revenue totaled $35,000. 5. Interest expense totaled $500 for the period. 6. Selling and Administrative Expenses amounted to $6,000 7. The company discontinued operations during the year that will result in total losses before taxes of $2,000. This loss is a taxable loss at normal rates and is a below-the-line item. 8. The company declared and paid out dividends of $1,600. 9. The corporate income tax rate applicable to the company amounts to 40% combined for both federal and state taxes.

On the following page prepare a well-formatted multi-section income statement for the Fiona Company for the fiscal year ending December 31, 2020 from the data below. Use the entire figures as shown on your income statement. Note: For items in section 2 (Other Items) and section 4 (Below-the-line Items) use brackets if an item will have a negative impact on earnings. In section 1 individual items are not generally shown in brackets except for calculated margins or totals if negative. 1. Cost of Goods Sold amounted to $20,000. 2. Sale of equipment that had a historical cost of $1,400 had accumulated depreciation of $910 and was sold for $890. The tax rate related to such a transaction is 25%. 3. Non-taxable interest income on municipal bonds of $300 4. Sales revenue totaled $35,000. 5. Interest expense totaled $500 for the period. 6. Selling and Administrative Expenses amounted to $6,000 7. The company discontinued operations during the year that will result in total losses before taxes of $2,000. This loss is a taxable loss at normal rates and is a below-the-line item. 8. The company declared and paid out dividends of $1,600. 9. The corporate income tax rate applicable to the company amounts to 40% combined for both federal and state taxes.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 64P: Albion Inc. provided the following information for its most recent year of operations. The tax rate...
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Prepare a well-formatted multi-step income statement for the Fiona Company for the fiscal year ending December 31, 2020 from the data provided on the next page. Be sure to place the related tax effects in the correct locations. Note: For items in sections 2 and sections 4 use brackets if an item will have a negative impact on earnings. In section 1 individual items are not generally shown in brackets except for calculated margins or totals if negative. + Fiona – 2020 Income Statement S's in 000's Tax Calculation Sales 35,000 COGS 20,000
Transcribed Image Text:Prepare a well-formatted multi-step income statement for the Fiona Company for the fiscal year ending December 31, 2020 from the data provided on the next page. Be sure to place the related tax effects in the correct locations. Note: For items in sections 2 and sections 4 use brackets if an item will have a negative impact on earnings. In section 1 individual items are not generally shown in brackets except for calculated margins or totals if negative. + Fiona – 2020 Income Statement S's in 000's Tax Calculation Sales 35,000 COGS 20,000
On the following page prepare a well-formatted multi-section income statement for the Fiona Company for the fiscal year ending December 31, 2020 from the data below. Use the entire figures as shown on your income statement. Note: For items in section 2 (Other Items) and section 4 (Below-the-line Items) use brackets if an item will have a negative impact on earnings. In section 1 individual items are not generally shown in brackets except for calculated margins or totals if negative. 1. Cost of Goods Sold amounted to $20,000. 2. Sale of equipment that had a historical cost of $1,400 had accumulated depreciation of $910 and was sold for $890. The tax rate related to such a transaction is 25%. 3. Non-taxable interest income on municipal bonds of $300 4. Sales revenue totaled $35,000. 5. Interest expense totaled $500 for the period. 6. Selling and Administrative Expenses amounted to $6,000 7. The company discontinued operations during the year that will result in total losses before taxes of $2,000. This loss is a taxable loss at normal rates and is a below-the-line item. 8. The company declared and paid out dividends of $1,600. 9. The corporate income tax rate applicable to the company amounts to 40% combined for both federal and state taxes.
Transcribed Image Text:On the following page prepare a well-formatted multi-section income statement for the Fiona Company for the fiscal year ending December 31, 2020 from the data below. Use the entire figures as shown on your income statement. Note: For items in section 2 (Other Items) and section 4 (Below-the-line Items) use brackets if an item will have a negative impact on earnings. In section 1 individual items are not generally shown in brackets except for calculated margins or totals if negative. 1. Cost of Goods Sold amounted to $20,000. 2. Sale of equipment that had a historical cost of $1,400 had accumulated depreciation of $910 and was sold for $890. The tax rate related to such a transaction is 25%. 3. Non-taxable interest income on municipal bonds of $300 4. Sales revenue totaled $35,000. 5. Interest expense totaled $500 for the period. 6. Selling and Administrative Expenses amounted to $6,000 7. The company discontinued operations during the year that will result in total losses before taxes of $2,000. This loss is a taxable loss at normal rates and is a below-the-line item. 8. The company declared and paid out dividends of $1,600. 9. The corporate income tax rate applicable to the company amounts to 40% combined for both federal and state taxes.
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