Please use the information from the left column of Exhibit 16-7 to prepare a proper multi-step income statement.

Description Book Income (Dr) Cr Book-Tax Adjustments (Dr) Taxable Income (Dr) Cr $60,000,000 (38,000,000) $22,000,000 $60,000,000 (38,000,000) $22,000,000 30,000 108,000 (12,000)Ex. 1 30,000 120,000 (28,000) 54,000 $22,176,000 28,000Ex. 7 16,000Exh. 4 70,000 $22,208,000 (9,868,000) (9,868,000) (450,000) (150,000)Exh. 4 100,000EX. 6 70,000Exh. 4 (95,000) (700,000)Exh. 4 Revenue from sales Cost of goods sold Gross profit Other income: Dividend income Interest income Capital gains (losses) Gain on fixed asset dispositions Gross income Expenses: Compensation Deferred compensation Stock option compensation Bad debt expense Charitable contributions Depreciation Advertising Warranty expenses Meals Life insurance premiums Other expenses Federal income tax expense Total expenses before charitable contribution, NOL, and DRD Income before charitable contribution, NOL, and DRD NOL carryover from prior year Taxable income for charitable contribution limitation purposes Charitable contributions Taxable income before DRD Dividends received deduction (DRD) Book/taxable income (300,000) (100,000) (165,000) Moved below (2,400,000) (1,920,000) (580,000) (28,000) (34,000) (64,000) (2,000,000)* (17,459,000) (3,100,000) (1,920,000) (410,000) (14,000) 170,000Exh. 4 14,000EX 1 34.000EX 1 (64,000) 2,000,000Ex. 2 (15,921,000) 4,717,000 $ 6,287,000 (24,000)Ex. 9 (24,000) 6,263,000 (700,000) 73.700Ex. 13 (626,300) 5,636,700 (15,000)Ex. 17 (15,000) $ 4,017,000 $ 5,621,700