Question

Presented below is an income statement for Crane Company for the year ended December 31, 2020.

Crane Company Income Statement For the Year Ended December 31, 2020
Net sales		$786,000
Costs and expenses:
Cost of goods sold		555,000
Selling, general, and administrative expenses		77,000
Other, net		30,000
Total costs and expenses		662,000
Income before income taxes		124,000
Income taxes		37,200
Net income		$86,800

Additional information:

1.		"Selling, general, and administrative expenses" included a usual but infrequent charge of $8,000 due to a loss on the sale of investments.
2.		"Other, net" consisted of interest expense, $10,000, and a discontinued operations loss of $20,000 before taxes. If the discontinued operations loss had not occurred, income taxes for 2020 would have been $43,200 instead of $37,200.
3.		Crane had 20,000 shares of common stock outstanding during 2020.

Using the single-step format, prepare a corrected income statement, including the appropriate per share disclosures.

Answer 1

Crane Company
Income Statement
For the year ending Dec 31.2020
Details	Amt$
Net Sales	$786,000.00
Cost & Expenses
Cost of Goods Sold	$555,000.00
Selling , General , Admin Expenses (77000-8000)	$69,000.00
Interest Expense	$10,000.00
Loss on Sale Investment	$8,000.00
Total Cost & Expense	$642,000.00
Income from Continuing Operation before tax	$144,000.00
Less: Income Tax	-$37,200.00
Income from Continuing Operation (A)	$106,800.00
Income/ (loss) from Discontinued Operational Loss
Loss from Discontinued Operation	$20,000.00
Less: Income Tax (43200-37200)	-$6,000.00
Loss from Discontinued Operation, Net of Tax (B)	$14,000.00
Net Income (A-B)	$92,800.00
Per Share of Common stock
Income from Continuing Operation (106800/20000)	$5.34
Discontinued Operational Loss, Net of Tax (-14000/20000)	-$0.70
Net Income	$4.64