Selling and administrative expenses  

Selling and administrative expenses

Retained earnings, December 31, 20X2
$2,750,000
Sales
2,000,000
Selling and administrative expenses
240,000
Hurricane loss (pre-tax) on plant (extraordinary item)
250,000
Cash dividends declared on common stock
33,600
Cost of goods sold
960,000
Gain resulting from computation error on depreciation charge in 20X1 (pre-tax)
2,000,000
Other revenue
80,000
Other expenses
50,000

Instructions: Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 100,000 shares of common stock were outstanding during the year