Vista Company has revenues of $80 million, expenses of $64 million, a tax-deductible earthquake loss (its tirst such loss) of $4 million, and a tax-deductible loss of $6 million resulting from the voluntary early extinguishment (retirement) of debt. The assumed income tax rate is 40%. The company's beginning-of-the-year retained earnings were $30 million, and a divi- dend of $2 million was declared.  lop85

a. Prepare an income statement for the year.

b. Prepare a statement of retained earnings for the year.

Conner Company had retained earnings of $56,000 as of January 1, 1998. In 1998, Conner