Presented below is information which relates to Labrador Limited for 2017-1 + Collections of credit sales .. $1,100,000 + Retained earnings, January 1, 2017 800.000 Sales + 1,900.000 Selling and administrative expenses.. +290,000T Casualty-loss (pre-tax). + 350,000 Cash dividends declared on common stock + 34,0001 Cost of goods sold. 1,100,000T Loss resulting from calculation error on depreciation charge-in-2015.(pre-tax). + 460,000T + Other revenues. +180,0001 - Other expenses....... 120,000 + Loss from early extinguishment of debt (pre-tax). 340,0001 + Gain from transactions in foreign currencies (pre-tax). 220,000 Proceeds from sale of Strathroy common shares 60,0001 Additional information: 1.- Early in 2017, Labrador changed depreciation methods for its plant assets from the double- declining-balance to the straight-line method. The affected assets were purchased at the beginning of 2015 for $200,000, had no residual value, and had useful lives of 10 years. Depreciation expense of $20,000 is included in the "Selling and Administrative Expenses". of $290.000.1 2. On September 1, 2017. Labrador sold one of its segments (product line) to Best Industries for a gain (pre-tax) of $550,000. During the period January 1 to August 31, the discontinued segment.incurred an operating loss (pre-tax) of $480,000. This loss is not included in any of the numbers shown above. I 3. Included-in-"Selling and Administrative Expenses" is "Bad Debts Expense" of $19.000. Labrador bases its bad debts expense upon a percentage of sales. In 2015 and 2016, the percentage was 0.5 %. In 2017, the percentage was changed to 1%. 1 Instructions Ind formnrenare a multiple-step-income statement for 2017. Assume a 20% income tax FISCHGU UCIUW 15 MUHTELIUH WILL Blollos I LADIUI LIGU UL 2011 + Collections of credit sales $1,100,000 Retained earnings, January 1, 2017 +800,0001 Sales ......... 1,900,0001 + Selling and administrative expenses. +290,000 Casualty loss (pre-tax). +350,000 Cash dividends declared on common stock + 34,0001 Cost of goods sold.. - 1.100,000 Loss resulting from calculation error on depreciation charge in 2015 (pre-tax). 460,000 Other revenues. 180,0001 - Other expenses..... 120,000 Loss from early extinguishment of debt (pre-tax)... + 340,000 Gain from transactions in foreign currencies (pre-tax). + 220.0001 + Proceeds from sale of Strathroy common shares..... + 60,000T Additional information: 1. - Early in 2017, Labrador changed depreciation methods for its plant assets from the double declining-balance to the straight-line method. The affected assets were purchased at the beginning of 2015 for $200,000, had no residual value, and had useful lives of 10 years. Depreciation expense of $20,000 is included in the "Selling and Administrative Expenses" of $290,000.1 2. On September 1, 2017, Labrador sold one of its segments (product line) to Best Industries for a gain (pre-tax) of $550,000. During the period January 1-to August 31, the discontinued segment incurred an operating loss (pre-tax) of $480,000. This loss is not included in any of the numbers shown above. 3. + Included in "Selling and Administrative Expenses is "Bad Debts Labrador bases its bad debts expense upon a percentage of sales. In 2015 and 2016, the percentage was 0.5 %. In 2017, the percentage was changed to 1% 1 Instructions In good form, prepare a multiple-step income statement for 2017. Assume a 20% income tax rate and that 20.000 common shares were outstanding during the year. 1 Presented below is information which relates to Labrador Limited for 2017-1 + Collections of credit sales .. $1,100,000 + Retained earnings, January 1, 2017 800.000 Sales + 1,900.000 Selling and administrative expenses.. +290,000T Casualty-loss (pre-tax). + 350,000 Cash dividends declared on common stock + 34,0001 Cost of goods sold. 1,100,000T Loss resulting from calculation error on depreciation charge-in-2015.(pre-tax). + 460,000T + Other revenues. +180,0001 - Other expenses....... 120,000 + Loss from early extinguishment of debt (pre-tax). 340,0001 + Gain from transactions in foreign currencies (pre-tax). 220,000 Proceeds from sale of Strathroy common shares 60,0001 Additional information: 1.- Early in 2017, Labrador changed depreciation methods for its plant assets from the double- declining-balance to the straight-line method. The affected assets were purchased at the beginning of 2015 for $200,000, had no residual value, and had useful lives of 10 years. Depreciation expense of $20,000 is included in the "Selling and Administrative Expenses". of $290.000.1 2. On September 1, 2017. Labrador sold one of its segments (product line) to Best Industries for a gain (pre-tax) of $550,000. During the period January 1 to August 31, the discontinued segment.incurred an operating loss (pre-tax) of $480,000. This loss is not included in any of the numbers shown above. I 3. Included-in-"Selling and Administrative Expenses" is "Bad Debts Expense" of $19.000. Labrador bases its bad debts expense upon a percentage of sales. In 2015 and 2016, the percentage was 0.5 %. In 2017, the percentage was changed to 1%. 1 Instructions Ind formnrenare a multiple-step-income statement for 2017. Assume a 20% income tax FISCHGU UCIUW 15 MUHTELIUH WILL Blollos I LADIUI LIGU UL 2011 + Collections of credit sales $1,100,000 Retained earnings, January 1, 2017 +800,0001 Sales ......... 1,900,0001 + Selling and administrative expenses. +290,000 Casualty loss (pre-tax). +350,000 Cash dividends declared on common stock + 34,0001 Cost of goods sold.. - 1.100,000 Loss resulting from calculation error on depreciation charge in 2015 (pre-tax). 460,000 Other revenues. 180,0001 - Other expenses..... 120,000 Loss from early extinguishment of debt (pre-tax)... + 340,000 Gain from transactions in foreign currencies (pre-tax). + 220.0001 + Proceeds from sale of Strathroy common shares..... + 60,000T Additional information: 1. - Early in 2017, Labrador changed depreciation methods for its plant assets from the double declining-balance to the straight-line method. The affected assets were purchased at the beginning of 2015 for $200,000, had no residual value, and had useful lives of 10 years. Depreciation expense of $20,000 is included in the "Selling and Administrative Expenses" of $290,000.1 2. On September 1, 2017, Labrador sold one of its segments (product line) to Best Industries for a gain (pre-tax) of $550,000. During the period January 1-to August 31, the discontinued segment incurred an operating loss (pre-tax) of $480,000. This loss is not included in any of the numbers shown above. 3. + Included in "Selling and Administrative Expenses is "Bad Debts Labrador bases its bad debts expense upon a percentage of sales. In 2015 and 2016, the percentage was 0.5 %. In 2017, the percentage was changed to 1% 1 Instructions In good form, prepare a multiple-step income statement for 2017. Assume a 20% income tax rate and that 20.000 common shares were outstanding during the year. 1