Income statement information for Flett Tire Repair Corporation for the year 2017 follows:

The effective tax rate on all income is 25%, and Flett applies ASPE.
Instructions
(a) Prepare a multiple-step income statement for 2017, showing expenses by function.
(b) Prepare a single-step income statement for 2017, showing expenses by nature.
(c) Discuss the merits of the two income statements, compared with each other.

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Freight-in $14,000 10,000 20,000 120,000 15,000 General and administrative expenses: Salaries and wages expense 39,000 Purchase discounts 28,500 Dividend revenue Depreciation expense -building Office supplies expense Inventory (ending) Loss- other (due to flood damage) Gain on the sale of equipment Purchases Sales revenue Interest expense 9,500 Inventory (beginning) 137,000 Sales returns and allowances 50,000 Service expenses 5,500 600,000 930,000 9,000 71,000 Salaries and wages Depreciation expense- garage equipment Garage supplies expense 18,000 9,000