Addison Corporation is currently going through a Chapter 11 bankruptcy reorganization. The company has the following...

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Addison Corporation is currently going through a Chapter 11 bankruptcy reorganization. The company has the following account balances for the current year. Debit Credit Advertising expense Cost of goods sold Depreciation expense $ 42,000 229,000 40,000 6,000 Interest expense Interest revenue $ 40,000 Loss on closing of branch as part of reorganization 127,000 89,000 34,000 Professional fees Rent expense Revenues 593,000 Salaries expense 88,000 Prepare an income statement for this organization. The effective tax rate is 30 percent (realization of any tax benefits is anticipated). (Negative amounts under "Reorganization items" should be indicated by a minus sign. All other amounts should be entered as positive.) ADDISON CORPORATION Income Statement Revenues $ 593,000 Costs and expenses: Advertising expense $ 42,000 Depreciation expense 40,000 Interest expense 6,000 Rent expense 34,000 Salaries expense 88,000 Cost of goods sold 229,000 439,000 Earnings before reorganization items and tax effects $ 154,000 Reorganization items: Interest revenue 40,000 Professional fees (89,000) Loss on closing of branch (127,000) (176,000) Loss before income tax benefit $ (22,000) Income tax benefit Net loss $ (22,000) Addison Corporation is currently going through a Chapter 11 bankruptcy reorganization. The company has the following account balances for the current year. Debit Credit Advertising expense Cost of goods sold Depreciation expense $ 42,000 229,000 40,000 6,000 Interest expense Interest revenue $ 40,000 Loss on closing of branch as part of reorganization 127,000 89,000 34,000 Professional fees Rent expense Revenues 593,000 Salaries expense 88,000 Prepare an income statement for this organization. The effective tax rate is 30 percent (realization of any tax benefits is anticipated). (Negative amounts under "Reorganization items" should be indicated by a minus sign. All other amounts should be entered as positive.) ADDISON CORPORATION Income Statement Revenues $ 593,000 Costs and expenses: Advertising expense $ 42,000 Depreciation expense 40,000 Interest expense 6,000 Rent expense 34,000 Salaries expense 88,000 Cost of goods sold 229,000 439,000 Earnings before reorganization items and tax effects $ 154,000 Reorganization items: Interest revenue 40,000 Professional fees (89,000) Loss on closing of branch (127,000) (176,000) Loss before income tax benefit $ (22,000) Income tax benefit Net loss $ (22,000)

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