Multiple-Step Income Statement
Shown Below Is an Income Statement for 2020

Multiple-step income statement
Shown below is an income statement for 2020 that was prepared by a junior accountant at Fritter Corporation.

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ FRITTER CORPORATION
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Income Statement
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ December 31, 2020

$\begin{array}{llcc} \text { Sales revenue............................................................... } &\$975,000 \\ \text {Investment revenue..................................................... } &19,500\\ \text { Cost of merchandise sold............................................ } &(408,500)\\ \text {Selling expenses. ......................................................... } &(115,000)\\ \text { Administrative expenses.............................................. } &(215,000)\\ \text { Interest expense............................................................ } &\underline{(13,000)}\\ \text {Income before special items............................................ } &203,000\\ \text {Special items } &\\ \text { Loss on disposal of a segment of the business................. } &(30,000)\\ \text {Major fire loss................................................................. } &(80,000)\\ \text {Net income tax liability................................................... } &\underline{(27,900)}\\ \text { Net income.....................................................................} &\underline{\underline{\$65,100}}\\\end{array}$
Instructions
In good form, prepare a multiple-step income statement for 2020 for Fritter Corporation that is presented in accordance with generally accepted accounting principles (including format and terminology). Fritter Corporation has 50,000 common shares outstanding and has a 20% income tax rate on all tax-related items. As a private corporation, Fritter does not disclose earnings per share information.