The following is a partial trial balance for General LightingCorporation as of December 31, 2018: Account Title Debits CreditsSales revenue 2,650,000 Interest revenue 86,000 Loss on sale ofinvestments 25,500 Cost of goods sold 1,250,000 Loss fromwrite-down of inventory due to obsolescence 260,000 Sellingexpenses 360,000 General and administrative expenses 180,000Interest expense 85,000 300,000 shares of common stock wereoutstanding throughout 2018. Income tax expense has not yet beenrecorded. The income tax rate is 40%. Required: 1. Prepare asingle-step income statement for 2018, including EPS disclosures.2. Prepare a multiple-step income statement for 2018, including EPSdisclosures.
