After returning from vacation, the accountant of Online Hearing Inc. was dismayed to discover that the income statement for the year ended December 31, 2023, was prepared incorrectly. All amounts included in the statement are before tax (assume a rate of 40%). The company had 200,000 common shares issued and outstanding throughout the year as well as 70,000 $1.00 cumulative preferred shares. Dividends had not been paid for the past two years (2021 and 2022). Retained earnings at December 31, 2022, were $171,000.

Required
Prepare a corrected income statement, using a multi-step format, including earnings per share information. Round all earnings per share calculations to the nearest whole cent.

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Online Hearing Inc. Income Statement December 31, 2023 Revenues: Sales $900,000 Gain on sale of discontinued operation (pre-tax) 120,000 Accumulated depreciation, equipment 22,500 Operating profit on discontinued operation (pre-tax) 318,000 $1,360,500 Expenses: Cost of goods sold Selling and administrative expenses Sales returns and allowances Loss on disposal of plant assets (pre-tax) Dividends Profit Earnings per share $240,000 90,000 7,000 40,000 47,500 424,500 $ 936,000 $ 4.68