ATV Inc. sells off-road motorcycles and vehicles. The following data were selected from the records of ATV Inc. for the current fiscal year ended March 31, 2008:

Advertising expense .................. $ 36,000

Cost of merchandise sold ................1,640,000

Depreciation expense—office equipment .......... 32,000

Depreciation expense—store equipment .......... 145,000

Gain on condemnation of land .............. 54,000

Income tax:

Applicable to continuing operations ............ 94,200

Applicable to loss from discontinued operations (reduction) .... 23,400

Applicable to gain on condemnation of land ......... 16,200

Interest revenue ..................... 25,000

Loss from disposal of business segment ........... 78,000

Loss from fixed asset impairment ............... 32,000

Miscellaneous administrative expense ............ 41,000

Miscellaneous selling expense ............... 25,000

Office salaries expense .................. 230,000

Rent expense ....................... 100,000

Restructuring charge .................... 70,000

Sales .......................... 2,800,000

Sales salaries expense .................. 160,000

Unrealized loss on temporary investments ........... 40,000

Instructions

Prepare a multiple-step income statement, concluding with a section for earnings per share in the form illustrated in this chapter. There were 20,000 shares of common stock (no preferred) outstanding throughout the year. Assume that the gain on the condemnation of land is an extraordinary item.