The following is a partial list of the accounts for Boot Company for the year ended December 31, 2017, in alphabetical order:

Dr.(Cr.)

Common shares ..................................................................................... $(2,000,000)
Cost of goods sold ..................................................................................     3,775,000
Depreciation expense .............................................................................          84,000
Dividends declared .................................................................................        150,000
Employee wages and benefits ................................................................        957,000
Loss from discontinued operations before tax ........................................        107,000
Marketing and advertising expenses ......................................................        642,000
Retained earnings, January 1, 2017 ......................................................      (443,000)
Sales ......................................................................................................   (4,661,000)
Utilities expense .....................................................................................         315,000

During the year, the company issued shares for proceeds of $400,000. In addition, the company had a change in depreciation policy that required a retroactive adjustment that increased the prior year’s depreciation expense by $62,000. Boot pays income tax at the rate of 40%. Assume that all of the above items except for retained earnings are before tax.

Required:
Using the information above, prepare, in good form, the following:

a. A multi-step income statement that includes relevant subtotals, with operating expenses listed by their function, for the year ended December 31, 2017.
b. A statement of changes in equity for the year ended December 31, 2017.