Textbook Problem

Mantego Company listed the following selected pretax items as of December 31, 2019:

Additional information:

The preferred shares had been outstanding the entire year; annual dividends were declared and paid in 2019. During 2019, 2,000 common shares were issued on July 2, and 6,000 common shares were issued on November 3. Common dividends of $12,500 were declared and paid in 2019. The company is subject to a 30% income tax rate.

Required:

Prepare Mantego’s 2019 income statement (multiple-step) and the related note.