The adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2011 reported the following: sales revenue, $22,300,000; cost of goods sold, $14,500,000; selling expenses, $2,300,000; general and administrative expenses, $1,200,000; dividend revenue from investments, $200,000; interest expense, $300,000.
Foxworthyâ€™s management has not yet accrued for income taxes. The company’s income tax rate is 40% on all items of income or loss.
Two million shares of common stock were outstanding throughout the year.
The company’s controller has provided the following information with respect to certain non-recurring transactions that also occurred during the year (all transactions are material in amount):
Investments classified as available for sale were sold during the year at a loss of $300,000.
One of the factories was closed during the year. Restructuring costs incurred were $2,000,000.
During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity. The division had reported operating income of $800,000 in 2011 prior to the sale, and its assets were sold at a loss of $1,800,000.
In 2011, the company’s accountant discovered that depreciation expense in 2010 for the office building was overstated by $300,000.
One of Foxworthy’s manufacturing facilities located in a foreign country was expropriated. A loss of $800,000 was recognized. The event is considered to be unusual and infrequent.
Prepare aformalIncome Statement in proper format, including basic earnings per share disclosure for Foxworthy Corporation for the year ended December 31, 2011.