Official Reserve Rare Coins (ORRC) was formed on January 1,2016. Additional data for the year follow:

a. On Jan 1 2016 ORRC issued no par common stock for $450,000

b. Early in Jan, ORRC made the following cash payments: 1) For store fixtures $49,000 2) For merchandise inventory $280,000 3) For rent expense on a store building, $10,000

c. Later in the year, ORRC purchased merchandise inventory on account for $238,000. Before year end, ORRC paid $158,000 of this account payble.

d During 2016 ORRC sold 2,900 units of merchandise inventory for $200 each. Before year end the company collected 80% of this amount. Cost of goods sold for the year was $340,000, and ending merchandise inventory totaled $178,000

e. The store employs three people. The combinded annual payroll is $88,000 of which ORRC still owes $5,000 at year end/

f. At the end of the year, ORRC paid income tax of $17,000. There are no income taxes payable.

g. Late in the 2016, ORRC paid cash dividends of $38,000

h. For fixtures, ORRC uses the straight-line depreciation method, over five years with zero residual value.

Requirement 1. Prepare ORRC's income statement for the year ended December 31, 2016

Use the single-step format, with all revenues listed together and all expenses listed together.

Official Reserve Rare Coins
Income Statement
Year Ended December 31, 2016
	Revenue:
	Expenses:
		Total Expenses
	Net Income