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Gower 1600000

Price: $2.50


The ledger of Gower Corporation at December 31, 2014, contains the following
summary data.

Net sales   1,600,000 Cost of goods sold   1,100,000
Selling expenses   70,000 Administrative expenses   90,000
Other revenues and gains   22,000 Other expenses and losses   28,000

Your analysis reveals the following additional information that is not included in the
above data.

1. The entire puzzles division was discontinued on August 31. The income from operations
for this division before income taxes was $15,000. The puzzles division was sold
at a loss of $80,000 before income taxes.
2. On May 15, company property was expropriated for an interstate highway. The settlement
resulted in an extraordinary gain of $100,000 before income taxes.
3. The income tax rate on all items is 30%.

Instructions
Prepare an income statement for the year ended December 31, 2014

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