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(TCO C) Presented below is information related to Tidal Wave Company.
(TCO C) Presented below is information related to Tidal Wave Company.
Retained earnings, December 31, 20X2
$ 2,350,000
Sales
2,600,000
Selling and administrative expenses
240,000
Earthquake loss (pre-tax) on plant (extraordinary item)
250,000
Cash dividends declared on common stock
53,600
Cost of goods sold
1,000,000
Gain resulting from computation error on depreciation charge in 2009 (pre-tax)
520,000
Other revenue
80,000
Other expenses
50,000
Instructions: Prepare in good form a multiple-step income statement for the year 20X2. Assume a 30% tax rate and that 100,000 shares of common stock were outstanding during the year. (Points : 40)
TCOIncome StatementFor the year December 31 20X2Sales $2,600,000 Cost of goods sold $1000, 000 Gross profit $1600, 000 Operating expensesSelling expenses and administrative expenses $240,000...