Shown below is an income statement for 2017 that was prepared by a junior accountant at Junior Corporation.

Junior Corporation

Income Statement

December 31, 2017

Sales revenue.......................................................................................................... $975,000

Investment revenue................................................................................................... 19,500

Cost of merchandise sold.......................................................................................... (408,500)

Selling expenses...................................................................................................... (155,000)

Administrative expense............................................................................................. (215,000)

Interest expense....................................................................................................... (13,000)

Income before special items....................................................................................... 203,000

Special items

Loss on disposal of a segment of the business........................................................ (30,000)

Major fire loss................................................................................................. (80,000)

Net income tax liability............................................................................................ (27,900)

Net income............................................................................................................. $ 65,100

Required

In good form, prepare a multiple-step income statement for 2017 for Junior Corporation that is presented in accordance with generally accepted accounting principles (including format and terminology). Junior Corporation has 50,000 common shares outstanding and has a 20% income tax rate on all tax related items. As a private corporation, Junior does not disclose earnings per share information.

Required

In good form, prepare a partial 2017 income statement for Turnover, taking into account the effects (if any) of the above items. The statement should start with income from continuing operations before income taxes. Unless otherwise indicated, you may assume an income tax rate of 40% for all items. Earnings per share calculations are not required.