The following information was taken from the accounting records of Temple Company Inc. for the year ended December 31, 2009:
Bonds Payable, 6% due 2014 $ 50,000
Property, Plant, and Equipment 397,000
Cash 41,000
Common Shares, 20,000 outstanding 400,000
Cost of goods sold (NOTE 1) 325,000
Customer Deposits 13,000
Dividends declared and paid 15,000
Error correction (NOTE 2) 20,000
Expenses - Abel Division 56,000
Gain on disposal of Abel division (NOTE 3) ?
Inventory Adjustment (NOTE 5) 40,000
Operating expenses 138,000
Prepaid Expenses 7,000
Retained Earnings - January 1 ,2009 71,000
Revenues - Abel Division 87,000
Sales 512,000
Wages Payable 7,000
NOTE 1: Based on FIFO Method
NOTE 2: The error correction involves a gain of $20,000 applicable to October 2008 not previously recorded.
NOTE 3: On June. 30,2009 Temple sold Abel division for $351,000 when the carrying value was $295,000. For financial statement reporting, the disposal was consisdered a disposal of a segment of the business. The measurement and the disposal date were both June. 30, 2009.
NOTE 4: The income tax rate on all types of income is 40%
NOTE 5: On September 1, 2009, Temple changed to the FIFO inventory costing method from the average inventory costing method. The pretax cumulative effect of the accounting change was a charge of $40,000.
REQUIRED: Prepare a mult-step income statement for Temple for the year ended December 31, 2009, including the disclosure of earnings per common share.