Chapter 4, Problem 4.5P

Income statement presentation; Restructuring costs; Discontinued operations; Accounting error

• LO4–1, LO4–3, LO4–4, LO4–5

[This is a variation of the previous problem focusing on income statement presentation.]

Required:

Refer to the information presented in P 4–4. Prepare a revised income statement for 2018 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 40% applies to all income statement items, and that 20 million shares of common stock were outstanding throughout the year.