The following information was taken from the records of Presley Inc. for the year
2014:

The following additional information was also available: income tax applicable to income from continuing operations, $187,000; income tax applicable to loss from operation of discontinued Ace Division, $25,000.
The company has elected to adopt ASPE.
Instructions
(a) Prepare a single-step income statement for 2014, showing expenses by function.
(b) Prepare a combined single-step income and statement of retained earnings.

Transcribed Image Text:

$ 70,000 600,000 850,000 300,000 1,900,000 Gain-other (due to expropriation) Loss from operation of discontinued Ace Division Administrative expenses Rent revenue Loss- other (due to flood) $95,000 75,000 40,000 Cash dividends declared Retained earnings, January 1, 2014 Cost of goods sold Selling expenses Sales revenue 60,000