Sales Presented below is information, which relates to Purple Corporation for 2020. 1,000,000 Interest revenue 250,000...

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Sales Presented below is information, which relates to Purple Corporation for 2020. 1,000,000 Interest revenue 250,000 Operating expenses Gain on sale of equipment Prepaid advertising expense Depreciation expense -equipment Interest expense 10,000 Accumulated depreciation- equipment 5,000 Deferred revenue 10,000 Gain on sale of FV-NI investment 15,000 COGS 6,000 12,000 Retained earnings 60,000 32,000 400,000 Additional information: 1. During 2020 the company declared dividends of $20,000 for their preferred shareholders and $10,000 for their common shareholders. 2. During 2020 the company decided to dispose of their heating division, the loss before tax for the division was $30,000 and the loss from the disposal before tax is $25,000. This qualifies as a discontinued operation. 500,000 Required: Prepare in good form a multiple-step statement of earnings for Purple Corporation for the year ended December 31, 2020. The company follows IFRS, as they are a public company. You don't need to calculate EPS. The total effective tax rate on all items is 30%. Sales Presented below is information, which relates to Purple Corporation for 2020. 1,000,000 Interest revenue 250,000 Operating expenses Gain on sale of equipment Prepaid advertising expense Depreciation expense -equipment Interest expense 10,000 Accumulated depreciation- equipment 5,000 Deferred revenue 10,000 Gain on sale of FV-NI investment 15,000 COGS 6,000 12,000 Retained earnings 60,000 32,000 400,000 Additional information: 1. During 2020 the company declared dividends of $20,000 for their preferred shareholders and $10,000 for their common shareholders. 2. During 2020 the company decided to dispose of their heating division, the loss before tax for the division was $30,000 and the loss from the disposal before tax is $25,000. This qualifies as a discontinued operation. 500,000 Required: Prepare in good form a multiple-step statement of earnings for Purple Corporation for the year ended December 31, 2020. The company follows IFRS, as they are a public company. You don't need to calculate EPS. The total effective tax rate on all items is 30%.

Answer rating: 100% (QA)

To prepare a multiplestep statement of earnings for Purple Corporation for the year ended December 31 2020 and applying a 30 tax rate the statement is as follows Purple Corporation Statement of Earnin... View the full answer