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Two accountants for the firm of Allen and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format.

05 / 03 / 2018 Assignment

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Two accountants for the firm of Allen and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2010 information related to Webster Company.

Administrative expense

Officers’ salaries $4,900

Depreciation of equipment 3,960

Cost of Goods Sold 63,570

Rental revenue 17,230

Selling Expense

Transportation-out 2,690

Sales commission 7,980

Depreciation of equipment 6,480

Sales 96,500

Income tax 7,580

Interest expense 1,860

Prepare a single-step income statement for the year ended December 31, 2010

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