The Tamer Tire Company provided the following partial trial balance for the current year ended December 31. The company is subject to a 40% income tax rate.

Required
a. Prepare a single- step income statement.
b. Prepare a multiple- step income statement.

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Tamer Tire Company Tial Balance (Selected Accounts) For the Year Ended December 31 Debit Account Dividends Sales Interest Income Dividend Income Gain on Flood Damage Gain on Disposal of Plant Assets Unrealized Gain on Trading Investments Cost of Goods Sold Office Supplies Expense Advertising Expense Office Salaries Expense Selling Expenses Accounting and Legal Fees-General Sales Salaries Expense Systems Consuting Fees-General Depreciation Expense General Amortization Expense-General Interest Expense Loss on Asset Impairment Loss on Discontinued Operations Before Tax Unrealized Loss on Available forSale Bonds Credit 2.300 S320,000 12,000 8,000 32,000 3,400 46,000 64,000 5,000 10,000 14,000 36,000 3,500 7000 2,000 18,000 11,000 4,500 12,500 20,000 5,600