The accountant of Tabel Shoe Co. has compiled the following information from the company’s records as a basis for an income statement for the year ended December 31, 2014.
Rental revenue ......................... $ 87,000
Interest on notes payable ..................... 54,000
Market appreciation on land above cost ................ 93,000
Wages and salaries—sales ...................... 344,400
Materials and supplies—sales .................... 52,800
Income tax ............................ 112,200
Wages and salaries—administrative .................. 407,700
Other administrative expenses ................... 155,100
Cost of goods sold .......................1,488,000
Net sales ...........................2,940,000
Depreciation on plant assets (70% selling, 30% administrative) .... 195,000
Dividends declared ....................... 48,000
There were 20,000 shares of common stock outstanding during the year.

Instructions
(a) Prepare a multiple-step income statement.
(b) Prepare a single-step income statement.
(c) Which format do you prefer? Discuss.