Please, solve this accounting problem using MAXWELL CORPORATION INCOME STATEMENT as a model.

MAXWELL GEAR CORPORATION

Income Statement

For the Year Ended December 31, 2021

Sales revenue $573,522

Cost of goods sold 302,371

Gross profit 271,151

Operating expenses:

Selling expense $47,341

General and administrative expense 24,888

Research and development expense 16,300

Total operating expenses 88,529

Operating income 182,622

Other income (expense):

Interest revenue 5,500

Gain on sale of investments 26,400

Interest expense (14,522)

Total other income, net 17,378

Income before income taxes 200,000

Income tax expense 50,000

Net income $150,000

AXEL CORPORATION

Income Statement

For the Year Ended December 31,2021

Revenue and gains:

Sales revenue $592,000

Interest revenue 32,000

Gain on sale of investments 86,000

Total revenue and gain 710,000

Expenses and losses:

Cost of goods sold $325,000

Selling expenses 67,000

Administrative expenses 87,000

interest expenses 16,000

Restructuring costs 55,000

Income tax expense 40,000

Total expense and losses 590,000

Net Income $ 120,000

Additional Information:

On December 31,2021, the company sold one of its divisions (a separate component defined by GAAP). On the date of sale ,the book value of this division was $ 100,000 and the Fair value less costs to sell was $150,000. The pretax gain from operations from the division for the year was $ 90,000.

Assume: 100,000 shares of common shares were outstanding throughout the year.

6% , $50 par value , 10,000 preferred shares outstanding.

Required:

Using all the relevant information provided, prepare a multiple step income statement for 2021 applying GAAP . The income tax rate is 30% . Be sure to include appropriate headings and subtotal titles (use model MAXWELL CORPORATION Income Statement above as a model)