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Starship, Incorporated provided the following financial statement information for 2018: (Click the icon to view the financial statement information.) (Click the icon for additional information.) Requirement a. Assuming a tax rate of 40%, prepare the multiple-step income statement for Starship for the year ended December 31, 2018. Starship, Inc. Income Statement For the Year Ended December 31, 2018 Sales Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income Other Revenues/Gains: Gain on Restructuring (pretax) Gain on Sale of Investments (pretax) Interest Income Other Expenses/Losses: Interest Expense Income before Tax Tax Expense (40%) Net Income after Tax - Data table $ 3,000,000 Credit sales Retained earnings, January 1, 2018 Sales Selling and administrative expenses Restructuring gain (pretax) 1,000,000 3,700,000 470,000 660,000 Cash dividends declared 220,000 2,220,000 Cost of goods sold Error correction: 2013 rent was unpaid and unrecorded Interest income 45,000 420,000 Interest expense 810,000 Gain on sale of investments (pre-tax) 450,000 More info On January 1, 2018, Starship changed its plant and equipment accounting for depreciation from the double-declining balance method to the straight-line method. Starship purchased the assets on January 1, 2017 for $900,000; they had no scrap value and useful lives of 6 years. The balance in the accumulated depreciation account on January 1, 2018 amounted to $299,700. Starship recorded the straight-line depreciation expense of $120,060 in 2018 and included it in the $470,000 reported for selling and administrative expenses. Depreciation expense would have been $199,900 if Starship still used the double-declining balance method. Bad debt expense for 2018 of $9,100 is included in selling, general, and administrative expenses on the income statement. Starship uses the percentage of accounts receivable method of estimating bad debt expense. The estimated percentage was 2% in both 2016 and 2017 but changed to 3% in 2018. At December 31, 2018, the Accounts Receivable balance is $670,000, and the Allowance for Uncollectible Accounts (before adjustment) was $11,000 credit balance