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

Cost of merchandise sold	$	115,000
Inventory warehousing cost		33,000
Accounts payable		133,000
Sales revenue		655,000
Accumulated depreciation		153,000
Sales returns		6,300
Unearned revenue		3,300
Depreciation expense		63,000
Rent revenue		5,300
Employee wages, salaries, and benefits		113,000
Interest expense		7,300
Investment revenue		4,300
Loss on disposal of geographic segment		43,000
Earnings from discontinued geographic segment		33,000
Distribution expenses		119,000
General and administrative expenses		59,000
Loss on sale of noncurrent assets		14,300
Income tax expense		?
Fire loss		33,000

Additional information:

• Functional costs do not include depreciation or employee costs.
• Depreciation expense pertains 55% to warehousing cost, 30% to administrative costs, and 15% to distribution expense.
• Employee wages, salaries, and benefits pertain 25% to warehousing and merchandising, 40% to administrative costs, and 35% to distribution expense.
• The companys income tax rate is 25%. 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.)