Reference no: EM133061844

Problem - Pertinent accounts gathered from the record of ABC Corporation for 2020 are as follows:

Purchases 5,250,000

Purchase returns and allowances 150,000 Rental income 250,000

Freight out 175,000 Salesmen's commissions 650,000

Depreciation- store equipment 125,000 Inventory, January 1 1,000,000

Inventory, December 31 1,500,000 Sales 7,850,000

Sales returns and allowances 140,000 Sales discounts 10,000

Depreciation- office equipment 300,000 Officers salaries 500,000

Freight in 500,000 Income tax 250,000

Loss on sale of equipment 50,000 Purchase discounts 100,000

Dividend revenue 150,000 Loss on sale of investment 50,000

Required - Prepare an income for the year using functional method?