27 Presented below is information that relates to Mulberry Limited for 2020: Collections of credit sales Retained earnings, January 1, 2020 Sales Selling and administrative expenses Casualty loss (pre-tax) Cash dividends declared on common shares Cost of goods sold Loss resulting from calculation error on depreciation charge in 2018 (pre-tax) Other revenues Other expenses Loss from early extinguishment of debt (pre-tax) Gain from transactions in foreign currencies (pre-tax) Proceeds from sale of Mulberry common shares $1,100,000 800,000 1,900,000 290,000 350,000 34,000 1,100,000 460,000 180,000 120,000 340,000 220,000 60,000 Additional information: . Early in 2020, Mulberry changed depreciation methods for its plant assets from the double- declining- balance to the straight-line The affected assets were purchased at the beginning of 2015 for $200,000, had no residual value, and had useful lives of 10 years. Depreciation expense of $20,000 is included in the selling and administrative expenses of $290,000. On September 1, 2020, Mulberry sold one of its segments (product line) to Best Industries for a gain (pre- tax) of $550,000. During the period January 1 to August 31, the discontinued segment incurred an operating loss (pre- tax) of $480,000. The loss is not included in any of the numbers shown Included in selling and administrative expenses is bad debts expense of $19,000. Mulberry bases its bad debts expense upon a percentage of In 2018 and 2019, the percentage was 0.5 %. In 2020, the percentage was changed to 1%. Instructions In good form, prepare a multiple-step income statement for 2020. Assume a 20% income tax rate and that 20,000 common shares were outstanding during the year