Question

The following income statement items appeared on the adiusted trial balance of Xavier Corporation Tor me year ended December 31, 2019: sales revenue. $22.300: cost of goods sold. $14,500, selling expenses. $2,300; general and administrative expenses. $1.200: dividend revenue from investments, $200, interest expense, $300. The company's income tax rate is 25% on all items of income or loss. al balance of Xavier Com expense, $300 and administrative eyevenue, $22,300: costs p oration to 20% on all it'evenue from $14,500 The company's controller, however, has asked for your help in determining the appropriate treatment of the following transactions that also occurred during 2019. All transactions are material in amount. • Investments were sold during the year at a loss of $300. One of the company's factory locations was closed during the year. Restructuring costs incurred as a result were $2,000. During the year, Xavier completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $800 in 2019 prior to the sale, and its assets were sold at a loss of $1,800. • Foreign currency translation adjustment of positive $400. Cequired: repare Xavier's multiple-step income statement for 2019. 1.000 shares of common stock were outstanding roughout the year. Statement of Comprehensive Income is not required.

Answer 1

Xavier Corporation Income statement for the year Ended December 31, 2019 Particulars sales Revenue Dividend Revenue Total Revenue Amount. $ 22,300 $ 200 $ 22,500 Expenses : cost of Goods sold $ 14,500 Selling Expenses $2,300 General and Administrative $ 1.200 Expenses Internet Expense $ 300 Loss from sale of investments $300 Restructuring costs $ 2000 Total Expenses $20,600 Profit before Tax $ 1.900 Leur Tax Expense @ 25% $ 475 Profit after tax $1,425 other comprehensive Income $ HOO cell Tod Expense @ 25%. $ 100 Other comprehensivencome ottel $ 300 Profit after tax from continuing $1,725 operations Protit ofte fad from důcontinued (750) Operations 1 Total profit for the year $975 Earrings per share (1996 hand $0.975/ share tou

calculation & Profit after tax from ducontinued operations Ancome from décontinuud operations $800 Loss from sale of anche ! $1,800 Profil loss) from dücontinued Operations ($1,000) Loll Tax Expenie a 25% (4260) Profit (loss after toxx from C#750) dücontinuid operations