The following information was taken from the records of Roland Carlson Inc. for the year 2020: income tax applicable to income from continuing operations $187,000, income tax applicable to loss on discontinued operations $25,500, and unrealized holding gain on available-for-sale debt securities (net of tax) $15,000.

Instructions

a. Prepare a single-step income statement (with respect to items in Income from operations).

b. Prepare a comprehensive income statement for 2020, using the two statement format.

c. Prepare a retained earnings statement for 2020.

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Cash dividends declared Retained earnings January 1, 2020 Cost of goods sold Selling expenses Sales revenue Gain on sale of equipment Loss on discontinued operations Administrative expenses Rent revenue Loss on write-down of inventory $ 95,000 $ 150,000 75,000 600,000 240,000 40,000 850,000 300,000 1,900,000 60,000