SECTION B PROBLEM QUESTIONS 1. Denver Corporation's capital structure consists of 20,000 shares of common stock and 60,000 shares of preferred stock. At December 31, 2017 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue Discontinued operations loss (net of tax) Selling expenses Cash Preferred stock Common stock Cost of goods sold Accumulated depreciation-machinery Dividend revenue Unearned service revenue Interest payable Interest expense Administrative expenses Dividends dedared on preferred stock Allowance for doubtful accounts Accounts payable $2,500,000 124,000 210,000 60,000 120,000 200,000 900,000 80,000 6,000 3,200 2,000 15,000 140,000 12,000 4,000 38,000 The federal income tax rate is 35%. Instructions Prepare a multiple-step income statement. Present Earnings Per Share (EPS) below the income statement