Reference no: EM132906459

The following information is taken from Julia Corporation at 31 December 2020, the end of Julia's fiscal year:

Account                              Amount

Sales revenue                1,500,000

Service revenue             180,000

Interest revenue                   45,000

Gains on sale of capital asset 150,000

Cost of goods sold (note 1) 600,000

Selling, general, and administrative expenses (note 2) 160,000

Interest expense 15,000

Loss on sale of long-term investment 20,000

Loss from earthquake damage 190,000

Loss on sale of discontinued business segment 50,000

Loss on operations of discontinued business segment 20,000

Notes:

• Consists of depreciation of $40,000 employee wages and benefits of $20,000 and $560,000 of merchandise purchases less $20,000 increase in inventory.
• Includes depreciation of $45,000 and employee wages and benefits of $80,000

Other information:

• The income tax rate is 30% on all items.
• There were 100,000 common shares outstanding throughout the year. No preferred shares are outstanding.
• Assume that the capital cost allowance deductible for tax purposes is equal to the depreciation expense shown on the income statement.

Required:

Problem 1: Prepare in good form a single- step SCI by function within the enterprise.