Tisdale Incorporated reports the following amount in its Dec

Tisdale Incorporated reports the following amount in its December 31, 2018, income statement. Net sales Gain on land sale* Selling expenses General expenses $ 275,000 105,000 55,000 45,000 Income tax expense Cost of goods sold Administrative expenses $ 25,000 185,000 35,000 On July 12, 2018, the company sold land for $440,000 that it had previously purchased for $335,000, resulting in a $105,000 gain. This is the only land owned by the company.

Solution

Tisdale Incorporated Multi-Step income statement For the year ended december 31,2018 Net sales 275,000 cost of goods sold 185,000 Gross profit 90,000 Selling expense 55,000 General expense 45,000 administrative expense 35,000 total operating expense 135,000 operating income(l0ss) -45,000 Non operating revenue 105,000 income before income taxes 60,000 income tax expense 25,000 net income 35,000