The current year€™s statement of net income for Boley Boxes, Inc. is presented below in a single- step format.

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Boley Boxes, Inc. Income Statement For the Year Ended December 31 Revenues and Gains Sales Interest Income Dividend Income Gain on Sale of Investment Securities Unrealized Gain on Trading Securities S875,650 325 790 4.300 6,000 Total Revenues and Gains Expenses and Losses Cost of Goods Sold Selling Expenses Sales Salaries Expense Advertising Expense Depreciation Expense--General Amortization Expense-General Office Salaries Expense Office Supplies Expense Loss on Asset Impairment Legal Fees General Accounting Fees-General Interest Expense Income Tax Expense at 40%* S887055 45,000 32,560 14,567 16,400 2,500 1,680 19,400 23,000 3,450 2.150 4,300 5,000 286,819 Total Expenses and Losses Income from Continuing Operations Gain on Discontinued Operations-net of tax Net Income 40% × (S887055-$170,007) 40% × $717048 = $286,819 (456.826 $430,229 2.700 S432,929