Define a compensating balance. How should a compensating balance be reported?

1. The accountant of Sohar International Company, has compiled the following information from the company's record as a basis for an income statement for the year ended December 31, 2019. Rental revenue $ 29,000 Income tax $37,400 Interest on notes payable $18,000 Wages and salaries - administrative $135,900 Market appreciation on land above cost $31,000 Other administrative expenses $51,700 Wages and salaries-sales $114,800 Cost of goods sold $496,000 Material and supplies - sales $17,600 Net sales $980,000 Depreciation on plant assets ( 70% selling, 30% Cash dividends declared $ 16,000 administrative) $65,000 There were 20,000 shares of common stock outstanding during the year. Instructions: From the foregoing information prepare an income statement for the year 2019 in single-step form