For its fiscal year ending October 31, 2010, Molini Corporation reports the following partial data. Income before income taxes $540,000 Income tax expense (30% $390,000) 117,000 Income before extraordinary items 423,000 Extraordinary loss from flood 150,000 Net income $273,000 For its fiscal year ending October 31, 2010, Molini Corporation reports the following partial data. Income before income taxes $540,000 Income tax expense (30% $390,000) 117,000 Income before extraordinary items 423,000 Extraordinary loss from flood 150,000 Net income $273,000 The flood loss is considered an extraordinary item. The income tax rate is 30% on all items. Instructions Complete the correct income statement, beginning with income before income taxes. MOLINI CORPORATION Partial Income Statement For the Year Ended October 31, 2010 Income before income taxes $ Income tax expenseExtraordinary loss from floodIncome before extraordinary item Income before extraordinary itemIncome tax expenseExtraordinary loss from flood Income before extraordinary itemIncome tax expenseExtraordinary loss from flood Net income $ The flood loss is considered an extraordinary item. The income tax rate is 30% on all items. Instructions Explain in memo form why the income statement data are misleading