Most real-world income statements are presented using which format?

Top of Form

Freda’s Florist reported the following before-tax income statement items for the year ended December 31, 2024:

Operating income	$ 268,000
Income on discontinued operations	58,000

All income statement items are subject to a 25% income tax rate. In its 2024 income statement, Freda’s income tax expense from continuing operations and total income tax expense would be:

Top of Form

Managers may engage in classification shifting by:

Misty Company reported the following before-tax items during the current year:

Sales revenue	$ 1,600
Selling and administrative expenses	860
Restructuring charges	20
Loss on discontinued operations	40

Misty’s effective tax rate is 25%.

What is Misty’s net income for the current year?

Top of Form

Howard Incorporated had prepaid rent of $76,000 and $82,000 at the end of 2023 and 2024, respectively. During 2024, Howard recorded $241,000 in rent expense in its income statement. Cash outflows for rent in 2024 were:

The trial balance of Kroeger Incorporated included the following accounts as of December 31, 2024:

	Debits	Credits
Sales revenue		$ 8,240,000
Interest revenue		64,000
Gain on sale of investments		124,000
Gain on debt securities		142,000
Loss on projected benefit obligation	$ 164,000
Cost of goods sold	6,060,000
Selling expense	640,000
Goodwill impairment loss	480,000
Interest expense	34,000
General and administrative expense	540,000

The gain on debt securities represents the increase in the fair value of debt securities and is classified a component of other comprehensive income. Kroeger had 300,000 shares of stock outstanding throughout the year. Income tax expense has not yet been recorded. The effective tax rate is 25%.

Required:

Prepare a 2024 multiple-step income statement for Kroeger Incorporated with earnings per share disclosure.

Note: Round Earnings per share answer to 2 decimal places.