The following information was taken from the records of Biscay Inc. for the year 2023:

The following additional information was also available: income tax applicable to income from continuing operations, $465,000; income tax recovery applicable to loss from operation of discontinued Rochelle Division, $60,000.The company has elected to adopt ASPE.

Instructions 

a. Prepare a single-step income statement for 2023, showing expenses by function. 

b. Prepare a combined single-step income and retained earnings statement.

Transcribed Image Text:

Gain from expropriation Loss from operation of discontinued Rochelle Division Administrative expenses Rent revenue Loss from flood damage $300,000 240,000 750,000 130,000 190,000 Cash dividends declared Retained earnings, January 1, 2023 Cost of goods sold Selling expenses Sales revenue $ 220,000 1,900,000 2,680,000 950,000 6,000,000