The Information below pertains to the operations of Montreal Retail Corporation for the year ended 31 December 20X6: 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 30% to warehousing and therchandising. 45% to administrative costs, and 25% to distribution expense. - The company's income tax rate is 20%. 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 noture of expense, using a single-step format. (Loss amounts should be indicated by a minus sign.) \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{MONTREALRETAILCORPORATIONIncomeStatement} \\ \hline \multicolumn{3}{|c|}{ Year Ended 31 December 20X6} \\ \hline \multicolumn{3}{|c|}{ (in Canadian dollars) } \\ \hline \multicolumn{3}{|l|}{ Revenues and gains: } \\ \hline Sales revenue, net & & $599,200 \\ \hline Gain (loss) on discontinued operation & & 28,000 \\ \hline Rent revenue & & 4,800 \\ \hline Investment revenue & & 3,800 \\ \hline Total revenues and gains & & 635,800 \\ \hline \multicolumn{3}{|l|}{ Expenses and losses: } \\ \hline \multicolumn{3}{|l|}{ Operating and administrative expenses: } \\ \hline Cost of merchandise sold & $110,000 & \\ \hline Depreciation expense & 58,000 & \\ \hline Employee wages, salaries, and benefits & 108,000 & \\ \hline Interest expense & 6,800 & \\ \hline Distribution expenses & 114,000 & \\ \hline General and administrative expenses & 54,000 & \\ \hline Inventory warehousing cost & 28,000 & \\ \hline \multicolumn{3}{|l|}{ Other expenses and losses: } \\ \hline Interest expense & 6,800 & \\ \hline \multicolumn{3}{|l|}{ Gain (loss) on discontinued operation } \\ \hline Loss on sale of noncurrent assets & 13,800 & \\ \hline \multicolumn{3}{|l|}{ Income tax expense } \\ \hline Fire loss & 28,000 & \\ \hline Total expenses and losses & & 527,400 \\ \hline Earnings from continuing operations & & 28,000 \\ \hline \multicolumn{3}{|l|}{ Gain (loss) on discontinued operation } \\ \hline Net income and comprehensive income & & 28,000 \\ \hline \end{tabular}