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Preparation of the single-step and multiple-step income statement
The following data were taken from the records of Motion Data Inc at December 31, 20D
Sales Revenue
$120,000
Administration expense
10,000
Selling expense
18,000
Income tax rate
25%
Gross margin (profit ratio)
40%
Shares outstanding
2,000
1. Prepare a complete single-step income statement for the company (including pretax income, and earnings per share)
2. Prepare a complete multiple-step income statement for the company (including gross margin, pretax income, and earnings per share)
Recognize which of these expenses are deductible and the amount that is deductible. Show whether they are deductible for or from AGI.
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