P14-6A Luke Capps, accountant for Mabry Furniture Company, was injured in a boating accident. Another employee prepared the accompanying income statement for the year ended December 31, 20X3. 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 loss, was 40%. Mabry Furniture Company issued 52,000 shares of common stock in 20X1 and held 2,000 shares as treasury stock during 20X3. Retained earnings, as originally reported at December 31, 20X2. was $361,000. Revenue and gains: Sales..... MABRY FURNITURE COMPANY Income Statement Year Ended December 31, 20X3 Gain on retirement of preferred stock (issued for $81,000; purchased for $71,000). $362,000 10,000 Total revenues and gains.. Cost of goods sold. Selling expenses.. General expenses. Sales returns Dividends Sales discounts. Income tax expense Total expenses and losses. Income from operations.. Paid-in capital in excess of par-common. Expenses and losses: 80,000 452,000 $105,000 67,000 61.000 11.000 7,000 6,000 20,000 277,000 175,000 Other gains and losses: Loss on discontinued operations Extraordinary flood loss.. $ (3,000) (20,000) Prior-period adjustment-understated income tax for 20X2. (14,000) Total other losses. Net income... (37,000) $138,000 $2.76 Earnings per share. Required Prepare a corrected combined statement of income and retained earnings for 20X3; include earnings per share. Prepare the income statement in single-step format.