The trainee accountant for Basu Production was prepared improperly the following income statement for the year 2020. INCOME STATEMENT December 31, 2020 BASU PRODUCTION Sales revenue $942.000 Interest revenue 24.500 Cost of merchandise sold (397.500) Selling expenses (225.000) Administrative expense (183.000) Interest expense (12.000) Income before special component 149.000 Special component Loss on disposal of a component of the business (50,000) Net income tax liability (19.800) Net income $79.200 Instructions: Using the information above, prepare an income statement for Basu Production for the year 2020 that is presented in accordance with IFRS including format and terminology. Basu has a 20% income tax rate on all tax related items and has 60.000 ordinary shares outstanding. (Round all EPS-earnings per share figures to the nearest cent.)
The trainee accountant for Basu Production was prepared improperly the following income statement for the year 2020. INCOME STATEMENT December 31, 2020 BASU PRODUCTION Sales revenue $942.000 Interest revenue 24.500 Cost of merchandise sold (397.500) Selling expenses (225.000) Administrative expense (183.000) Interest expense (12.000) Income before special component 149.000 Special component Loss on disposal of a component of the business (50,000) Net income tax liability (19.800) Net income $79.200
Instructions: Using the information above, prepare an income statement for Basu Production for the year 2020 that is presented in accordance with IFRS including format and terminology. Basu has a 20% income tax rate on all tax related items and has 60.000 ordinary shares outstanding. (Round all EPS-earnings per share figures to the nearest cent.)
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