The accountant for Weatherspoon Shoe has compiled the following information from the company’s records as a basis for an income statement for the year ended December 31, 2022.

Rent revenue ............................................................................................................. £ 29,000
Interest expense ...........................................................................................................18,000
Unrealized gain on non-trading equity securities, net of tax ................................. 31,000
Selling expenses ......................................................................................................... 140,000
Income tax .................................................................................................................... 30,600
Administrative expenses ........................................................................................... 181,000
Cost of goods sold ...................................................................................................... 516,000
Net sales ...................................................................................................................... 980,000
Cash dividends declared ............................................................................................. 16,000
Loss on sale of plant assets ........................................................................................ 15,000

There were 20,000 ordinary shares outstanding during the year.

Instructions

a. Prepare a comprehensive income statement using the combined statement approach.

b. Prepare a comprehensive income statement using the two statement approach.

c. Which format do you prefer? Discuss.