Xccounting Information System ar Presented below is information which relates to Labrador Limited for 2017: $1,100,000 Collections of credit sales Retained earnings, January 1, 2017 800,000 1,900,000 Sales Selling and administrative expenses Casualty loss (pre-tax) 290,000 350,000 Cash dividends declared on common stock 34,000 Cost of goods sold Loss resulting from calculation error on depreciation charge in 2015 (pre-tax) Other revenues Other expenses Loss from early extinguishment of debt (pre- tax) Gain from transactions in foreign currencies (pre- tax) Proceeds from sale of Strathroy common 1,100,000 460,000 180,000 120,000 340,000 220,000 60,000 shares Additional information: 1 Early in 2017, Labrador changed depreciation methods for its plant assets from the double declining-balance to the straight-line method. The affected assets were purchased at the beginning of 2015 for $200,000, had no residual value, and had useful lives of 10 years. Depreciation expense of $20,000 is included in the "Selling and Administrative Expenses" of $290,000 On September 1, 2017, Labrador sold one of its segments (product line) to Best Industries for a gain (pre- tax) of $550,000. During the period January 1 to August 31, the discontinued segment incurred an operating loss (pre-tax) of $480,000. This loss is not included in any of the numbers shown above. 2. 3. Included in "Selling and Administrative Expenses" is "Bad Debts Expense" of $19,000. Labrador bases its bad debts expense upon a percentage of sales. In 2015 and 2016, the percentage was 0.5 %. In 2017, the percentage was changed to 1 % Instructions In good form, prepare a multiple-step income statement for 2017. Assume a 20 % income tax rate and that 20,000 common shares were outstanding during the year. DATE: That is all tha itaranation we were en. Xccounting Information System ar Presented below is information which relates to Labrador Limited for 2017: $1,100,000 Collections of credit sales Retained earnings, January 1, 2017 800,000 1,900,000 Sales Selling and administrative expenses Casualty loss (pre-tax) 290,000 350,000 Cash dividends declared on common stock 34,000 Cost of goods sold Loss resulting from calculation error on depreciation charge in 2015 (pre-tax) Other revenues Other expenses Loss from early extinguishment of debt (pre- tax) Gain from transactions in foreign currencies (pre- tax) Proceeds from sale of Strathroy common 1,100,000 460,000 180,000 120,000 340,000 220,000 60,000 shares Additional information: 1 Early in 2017, Labrador changed depreciation methods for its plant assets from the double declining-balance to the straight-line method. The affected assets were purchased at the beginning of 2015 for $200,000, had no residual value, and had useful lives of 10 years. Depreciation expense of $20,000 is included in the "Selling and Administrative Expenses" of $290,000 On September 1, 2017, Labrador sold one of its segments (product line) to Best Industries for a gain (pre- tax) of $550,000. During the period January 1 to August 31, the discontinued segment incurred an operating loss (pre-tax) of $480,000. This loss is not included in any of the numbers shown above. 2. 3. Included in "Selling and Administrative Expenses" is "Bad Debts Expense" of $19,000. Labrador bases its bad debts expense upon a percentage of sales. In 2015 and 2016, the percentage was 0.5 %. In 2017, the percentage was changed to 1 % Instructions In good form, prepare a multiple-step income statement for 2017. Assume a 20 % income tax rate and that 20,000 common shares were outstanding during the year. DATE: That is all tha itaranation we were en