Answer:
Net income is $312,610.
Explanation:
This can then be prepared as follows:
Marigold Inc.
Single-Step Income Statement
For the Year 2020
<u>Particulars $ $ </u><u> </u>
<u>Revenue</u>
Sales Revenue 1,634,000
Rent revenue 34,400
Gain on sale Of equipment <u> 81,700 </u>
Total revenue 1,750,100
<u>Expenses</u>
Cost of goods sold (731,000)
Selling expenses (258,000)
Administrative expenses (206,400)
Loss on write-down of inventory <u> (51,600) </u>
Total expenses <u> (1,247,000) </u>
Operating income before tax 503,100
Tax on income from continuing
operations <u> (160,820) </u>
Income from operation after tax 342,280
<u>Other income (loss ) (net of tax) </u>
Unrealized holding gain on
available-for-sale securities (net of tax) <u> 12,900 </u>
Income from continuing operations
after tax 355,180
<u>Discontinued operations</u>
Loss on discontinued operations
before tax (64,500)
Tax on loss on discontinued operations <u> 21,930 </u>
Loss on discontinued operations after tax <u> (42,570) </u>
Net income <u> 312,610 </u>
Earning per share
(Net income / Number of Shares outstanding) 3.13
