Reference no: EM133061844
Problem - Pertinent accounts gathered from the record of ABC Corporation for 2020 are as follows:
Purchases 5,250,000
Purchase returns and allowances 150,000 Rental income 250,000
Freight out 175,000 Salesmen's commissions 650,000
Depreciation- store equipment 125,000 Inventory, January 1 1,000,000
Inventory, December 31 1,500,000 Sales 7,850,000
Sales returns and allowances 140,000 Sales discounts 10,000
Depreciation- office equipment 300,000 Officers salaries 500,000
Freight in 500,000 Income tax 250,000
Loss on sale of equipment 50,000 Purchase discounts 100,000
Dividend revenue 150,000 Loss on sale of investment 50,000
Required - Prepare an income for the year using functional method?