The following amounts were taken from the income statement of Beauty World for the year ending December 31,Year 1:
$$\begin{array} { l r }
& \underline{ \text { Year 1 }} \
\text { Net sales } & \$ 750,000 \
\text { Selling general and administrative expense } & 450,000 \
\text { Research and development expense }& 50,000 \
\text { Other income (net) } & 25,000
\end{array}$$
How much is net income for the year ended December 31,Year 1? Would the net income amount have been different if the company had used a single-step income statement rather than the multiple-step statement? Explain.

Question

The following amounts were taken from the income statement of Beauty World for the year ending December 31,Year 1:
 $$\begin{array} { l r } 
& \underline{ \text { Year 1 }} \
\text { Net sales } & \$ 750,000 \
\text { Selling general and administrative expense }  & 450,000 \
\text { Research and development expense }& 50,000 \
\text { Other income (net) } & 25,000
\end{array}$$ 
How much is net income for the year ended December 31,Year 1? Would the net income amount have been different if the company had used a single-step income statement rather than the multiple-step statement? Explain.

Quizplus · Accepted Answer

The Answer of The following amounts were taken from the income statement of Beauty World for the year ending December 31,Year 1:
 $$\begin{array} { l r } 
& \underline{ \text { Year 1 }} \
\text { Net sales } & \$ 750,000 \
\text { Selling general and administrative expense }  & 450,000 \
\text { Research and development expense }& 50,000 \
\text { Other income (net) } & 25,000
\end{array}$$ 
How much is net income for the year ended December 31,Year 1? Would the net income amount have been different if the company had used a single-step income statement rather than the multiple-step statement? Explain.

The Following Amounts Were Taken from the Income Statement of Beauty