Single-Step Income Statement

question 34

Essay

Single-step income statement.Presented below is an income statement for Kinder Company for the year ended December 31, 2014. Additional information:1. "Selling, general, and administrative expenses" included a usual but infrequent charge of $7,000 due to a loss on the sale of investments.2. "Other, net" consisted of interest expense, $10,000, and an extraordinary loss of $20,000 before taxes due to earthquake damage. If the extraordinary loss had not occurred, income taxes for 2014 would have been $48,000 instead of $42,000."4. Kinder had 20,000 shares of common stock outstanding during 2014.
InstructionsUsing the single-step format, prepare a corrected income statement, including the appropriate per share disclosures."

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Definitions:

Right to Cancel

A legal entitlement allowing a party to terminate an agreement or contract within a specific time frame.

Promisee Promises

Commitments or assurances made by the promisee (receiver of the promise) within a contractual agreement.

Bankruptcy Reform Act

A piece of legislation that reformed the bankruptcy system, typically referring to the Bankruptcy Reform Act of 1978 or amendments thereof.

Debtors

Individuals or entities that owe money to others.