The information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6: Cost of merchandise sold Inventory warehousing cost Accounts payable Sales revenue Accumulated depreciation Sales returns Unearned revenue Depreciation expense Rent revenue Employee wages, salaries, and benefits Interest expense Investment revenue Loss on disposal of geographic segnent Earnings fron discontinued geographic segment Distribution expenses General and administrative expenses Loss on sale of noncurrent assets Income tax expense Fire loss $120,000 38,eee 138,eee 705,000 158, eee 6,800 3,800 68,000 5,800 118, eee 7,800 4,800 48,000 38,800 124,000 64,000 14,800 ? 38,000 Additional information: Functional costs do not include depreciation or employee costs. . Depreciation expense pertains 60% to warehousing cost, 30% to administrative costs, and 10% to distribution expense. Employee wages, salaries, and benefits pertain 20% to warehousing and merchandising, 50% to administrative costs, and 30% to distribution expense. The company's 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. MONTREAL RETAIL CORPORATION Income Statement Year Ended 31 December 20X6 (in Canadian dollars) Revenues and gains 2. Prepare an income statement on a functional basis in a multiple-step format. (Loss amounts should be indicated by a minus sign.) MONTREAL RETAIL CORPORATION Income Statement Year Ended 31 December 20X6 (in Canadian dollars) Net sales 0 Operating and administrative expenses