Chapter 4, Problem 4.4BE

Multiple -step income statement

• LO4–1, LO4–3

The following is a partial year-end adjusted trial balance.

Account Title	Debits	Credits
Sales revenue		300,000
Loss on sale of investments	22,000
Interest revenue		4,000
Cost of goods sold		160,000
General and administrative expenses		40,000
Restructuring costs		50,000
Selling expenses		25,000
Income tax expense		0

Income tax expense has not yet been recorded. The income tax rate is 40%. Determine the following: (a) operating income (loss), (b) income (loss) before income taxes, and (c) net income (loss).