After returning from vacation, the accountant of Online Hearing Inc. was dismayed to discover that the income statement for the year ended December 31, 2014, 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 (2012 and 2013). Retained earnings at December 31, 2013, 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 wholecent.