Chapter 5, Problem 5.1E

Multiple-Step and Single-Step Statements of Net Income.

The Tamer Tire Company provided the following partial trial balance for the current) December 31. The company is subject to a 40% income tax rate.

Tamer Tire Company Trial Balance (Selected Accounts) For the Year Ended December 31
Account	Debit	Credit
Dividends	$ 2,300
Sales		$320,000
Interest Income		12,000
Dividend Income		8,000
Gain on Flood Damage		32,000
Gain on Disposal of Plant Assets		3,400
Unrealized Gain on Trading Investments		46,000
Cost of Goods Sold	64,000
Office Supplies Expense	5,000
Advertising Expense	10,000
Office Salaries Expense	14,000
Selling Expenses	36,000
Accounting and Legal Fees—General	3,500
Sales Salaries Expense	7,000
Systems Consulting Fees—General	2,000
Amortization Expense—General	11,000
Interest Expense	4,500
Loss on Asset Impairment	12,500
Loss on Discontinued Operations—Before Tax	20,000
Unrealized Loss on Available-for-Sale Bonds	5,600

Required

1. a. Prepare a single-step income statement.
2. b. Prepare a multiple-step income statement.