Transcribed Image Text: Prepare a well-formatted multi-step income statement for the Fiona Company for the fiscal year ending December 31, 2020 from the data provided on the next page. Be

Transcribed Image Text: Prepare a well-formatted multi-step income statement for the Fiona
Company for the fiscal year ending December 31, 2020 from the data
provided on the
next page. Be sure to place the related tax effects in the correct locations.
Note: For items in sections 2 and sections 4 use brackets if an item will have
a negative impact on earnings. In section 1 individual items are not
generally shown in brackets except for calculated margins or totals if
negative.
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Fiona – 2020 Income Statement
S’s in 000’s
Tax Calculation
Sales
35,000
COGS
20,000 Transcribed Image Text: On the following page prepare a well-formatted multi-section income
statement for the Fiona Company for the fiscal year ending December 31,
2020 from the data below. Use the entire figures as shown on your income
statement.
Note: For items in section 2 (Other Items) and section 4 (Below-the-line Items)
use brackets if an item will have a negative impact on earnings. In section 1
individual items are not generally shown in brackets except for calculated
margins or totals if negative.
1. Cost of Goods Sold amounted to $20,000.
2. Sale of equipment that had a historical cost of $1,400 had accumulated
depreciation of $910 and was sold for $890. The tax rate related to such a
transaction is 25%.
3. Non-taxable interest income on municipal bonds of $300
4. Sales revenue totaled $35,000.
5. Interest expense totaled $500 for the period.
6. Selling and Administrative Expenses amounted to $6,000
7. The company discontinued operations during the year that will result in
total losses before taxes of $2,000. This loss is a taxable loss at normal
rates and is a below-the-line item.
8. The company declared and paid out dividends of $1,600.
9. The corporate income tax rate applicable to the company amounts to
40% combined
for both federal and state taxes.