The information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6:

Cost of merchandise sold	$	116,000
Inventory warehousing cost		34,000
Accounts payable		134,000
Sales revenue		665,000
Accumulated depreciation		154,000
Sales returns		6,400
Unearned revenue		3,400
Depreciation expense		64,000
Rent revenue		5,400
Employee wages, salaries, and benefits		114,000
Interest expense		7,400
Investment revenue		4,400
Loss on disposal of geographic segment		44,000
Earnings from discontinued geographic segment		34,000
Distribution expenses		120,000
General and administrative expenses		60,000
Loss on sale of noncurrent assets		14,400
Income tax expense		?
Fire loss		34,000

Additional information:

• Functional costs do not include depreciation or employee costs.
• Depreciation expense pertains 55% to warehousing cost, 25% to administrative costs, and 20% to distribution expense.
• Employee wages, salaries, and benefits pertain 30% to warehousing and merchandising, 45% to administrative costs, and 25% to distribution expense.
• The companys income tax rate is 30%. Assume that the tax rate pertains to all elements of revenue, expense, gain, and loss.

Required: 1. Prepare an income statement on the basis of nature of expense, using a single-step format. 2. Prepare an income statement on a functional basis in a multiple-step format. (Loss amounts should be indicated by a minus sign.)