(Multiple-step and Extraordinary Items) The following balances were taken from the books of Maria Conchita Alonzo Corp. on December 31, 2004.

Assume the total effective tax rate on all items is 34%.
Instructions Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.

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Interest revenue $ 86,000 Cash 51,000 Sales Accounts receivable 1,380,000 Accumulated depreciation-equipment Accumulated depreciation-building Notes receivable $ 40,000 28,000 155,000 150,000 Selling expenses 194,000 Prepaid insurance 20,000 Accounts payable 170,000 Sales returns and allowances 150,000 Bonds payable 100,000 Allowance for doubtful Administrative and general accounts 7,000 expenses 97,000 Sales discounts 45,000 Accrued liabilities 32,000 Land 100,000 Interest expense 60,000 Equipment 200,000 Notes payable 100,000 Building 140,000 Loss from earthquake damage Cost of goods sold 621,000 (extraordinary item) 150,000 Common stock 500,000 Retained earnings 21,000