The following incorrect income statement was prepared by the accountant of the Axel Corporation:

Required:
Prepare a multiple-step income statement for 2011 applying generally accepted accounting principles. The income tax rate is 40%. The gain from litigation settlement is considered an unusual and infrequentevent.

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AXEL CORPORATION Income Statement For the Year Ended December 31, 2011 evenues and gains ales $5,92,000 32,00 86,000 7,10,000 Interest and dividends ain from litigation settlement otal revenues and gains xpenses and losses ost of goods sold elling expenses dministrative expenses nterest S 3,25,00 67,000 87,000 26,000 55,00 60,00 Restructuring costs ncome taxes 6,20,000 S 90,000 $0.9 otal expenses and losses Net Income arnings per share