Wright Company reports the following information for the year ended December 31, 2019:
Pretax income from continuing operations ....................................$160,000a
Pretax income from operations of discontinued Division M .............27,000
Pretax loss on disposal of Division M ...................................................(45,000)
Pretax correction of error in understating depreciation in 2018 ........(8,000)
Retained earnings, January 1, 2019 .......................................................410,000
Cash dividends during 2019 ......................................................................48,000
Income tax payable ...................................................................................41,000b
^aOf this amount, revenues are $400,000 and expenses are $240,000.
^bOf this amount, $6,750 relates to the pretax income from the operations of discontinued Division M; pretax loss on the disposal of Division M resulted in an income tax savings of $11,250; and pretax correction of the depreciation error resulted in an income tax savings of $2,000.

Required:
1. Prepare the year-end journal entry necessary to record the 2019 intraperiod income tax allocation in regard to the preceding information.
2. Prepare Wright’s 2019 income statement and statement of retained earnings.