Problem 4-4- Correcting an INCOME STATEMENT INSTRUCTIONS for problem below First -Prepare a scrip of corrections (statement of how each correction should be completed including which class of income result is affected, what dollar amounts are involved and the tax consequences of each).. Use thorough and concise grammatically correct statements. B. Prepare a corrected INCOME STATEMENT for the year 20Xx starting with Income from Continuing Operations before Taxes. Compute earnings per share as it should be shown on the face of e income statement. (assume a total effective tax rate of 38% on all items, unless indicated otherwise). Michele Green Corp. has 100,000 shares of common stock outstanding. In 20XX, the company reports income from income from continuing operations before taxes of $1,210,000. Additional transactions not considered in the $1,210,000 are as follows: 1. In 20XX, the company reviewed its accounts receivable and determined that $26,000 of accounts receivable that had been carried for years appeared unlikely to be collected. 2. An internal audit discovered that amortization of intangible assets was understated by $35,000 (net of tax) in a prior period. The amount was charged against retained earnings 3. The company sold its only investment in common stock during the year at a gain of $145,000. The gain is taxed at a total effective rate of 40%. Assume that the transaction meets the requirement of an extraordinary item. 4. In 20XX, Michele Green Corp. sold equipment for $40,000. The machine had originally cost $80,000 and had accumulated depreciation of $36,000. The gain or loss is considered ordinary