Felicia Barrow, accountant for Lackland Aviation, Inc., was injured in a bicycle acci- dent. Another employee prepared the following income statement for the fiscal year ended June 30, 20X4: LACKLAND AVIATION Income Statement June 30, 20X4 Revenues and gains: Sales $733,000 Expenses and losses: Gain on retirement of preferred stock (issued for $70,000; purchased for $59,000). Paid-in capital in excess of par-common Total revenues and gains. Cost of goods sold. Selling expenses. 11.000 100,000 844,000 $383,000 103,000 General expenses 91.000 Sales returns Prior-period adjustment-understated income tax for fiscal year 20X3. 22,000 4.000 Dividends. 15,000 Sales discounts. 10.000 Income tax expense-continuing operations 32,000 Total expenses and losses 660.000 Income from operations. 184.000 Other gains and losses: Extraordinary gain. Loss on discontinued operations. $ 30,000 (15,000) Total other gains.. Net income Earnings per share 15.000 $199,000 $9.95 The individual amounts listed on the income statement are correct. However, some accounts are reported incorrectly, and others do not belong on the income statement at all. Also. income tax has not been applied to all appropriate figures. The income tax rate on discontinued operations and on the extraordinary gain, is 40%. Lackland issued 24,000 shares of common stock in 20X1 and held 4,000 shares as treasury stock during the fiscal year 20X4. The retained earnings balance, as originally reported at June 30, 20X3, was $209,000. Required Prepare a corrected combined statement of income and retained earnings for fiscal year 20X4: include earnings per share. Prepare the income statement in single-step format.