The following information is for Rooftop Ltd. for the year ended December 31, 2011:
Cost of goods sold……………………………..$175,000
Dividends declared…………………………….. 4,900
Dividend revenue………………………………. 2,100
Gain on expropriation of land…………………… 5,600
Gain on sale of land……………………………… 5,880
Interest expense………………………………….. 7,000
Loss from earthquake damage…………………… 13,300
Loss from flood damage…………………………. 11,620
Income from operations of the company's
Wholesale Division, which was closed
(discontinued) during the year……………………. 2,800
Loss on sale of the Wholesale Division…………… 44,800
Operating expenses………………………………... 63,000
Sales revenue………………………………………. 287,000
The income tax rate is 40%. The company had 10,000 common shares outstanding throughout the entire year, and is located in a part of Ontario where earthquakes have rarely occurred before but floods have been known to happen in the past.
Required:
Prepare a statement of earnings, in single-step format, based on the information. (Note: Expropriation is a process by which governments can take over private property for public purposes. When property is expropriated, the owner has no choice but to sell it to the government.)