Corporation provided the following account balances as of the end of the current year. The company is subject to a 45% income tax rate.

Requirement

Prepare a single-step and a multiple-step statement of net income for Bob Corporation.

Bob Corporation

Trial Balance (Selected Accounts)

For the Year Ended December 31

Account

Debit

Credit

Dividends

$29,000

Sales

$1,800,000

Interest Income

7,500

Dividend Income

5,800

Unrealized Gain on Trading Securities

24,000

Gain on Disposal of Plant Assets

28,000

Gain on Flood Damage-Before Tax

18,000

Gain on Discontinued Operations-Before Tax

31,000

Cost of Goods Sold

78,000

Sales Salaries Expense

34,000

Office Supplies Expense

25,000

Advertising Expense

88,000

Office Salaries Expense

25,000

Systems Consulting Fees-General

32,000

Selling Expenses

84,000

Accounting and Legal Fees-Administrative

38,000

Depreciation Expense-General

89,000

Amortization Expense-General

13,000

Interest Expense

30,000

Loss on Asset Impairment

66,000

Unrealized Loss on Available-for-Sale Bonds

7,000

Bob Corporation

Statement of Net Income

For the Year Ended December 31