Use This Information to Answer the Following Question If the Income Statement Were Prepared in a Multistep Form,income

question 72

Multiple Choice

Use this information to answer the following question. $\begin{array}{c}\text { Alcorn \& Zeto Company}\\\text { Income Statement}\\\text { For the Year Ended December 31, 2010}\\\begin{array}{lrr}\text { Revenues } & \\\text { Net sales } & \$ 100,000 \\\text { Dividend income } &\underline{8,750} \\\text { revenues } &&\$108,750\\\text { Costs and expenses } & \\\text { Costs of goods sold } & \$ 30,000 \\\text { Selling expenses } & 10,000 \\\text { General and administrative expenses } & 13,750 \\\text { Interest expense } & \underline{ 6,250} \\\text { Total costs and expenses } && \underline{60,000} \\\text { before income taxes } && \$ 48,750 \\\text { Income taxes } && \underline{ 19,500} \\\text { Net income } && \underline{ \$ 29,250}\end{array}\end{array}$
If the income statement were prepared in a multistep form,income before income taxes would be

• A) $33,750.
• B) $52,500.
• C) $40,000.
• D) $48,750.

---

Definitions:

Securities Exchange Act

A U.S. law enacted in 1934 that governs the trading of securities, such as stocks and bonds, aimed at protecting investors and maintaining fair markets.

Register Securities

The process of filing securities with the appropriate regulatory body, providing necessary information before they can be legally sold to the public.

Federal Registration Requirement

Federal Registration Requirement mandates that certain securities and financial transactions must be registered with a governmental body, typically to ensure transparency and protect investors.

State Registration Requirement

Legal stipulation that mandates entities or individuals to register with state authorities for conducting certain activities.