1. At December 31, 2018 an analysis of the accounts of ABC Inc and discussions with their Financial Controller revealed the following information: Sales revenue $1,500,000 Discontinued operations loss (net of tax) 63.000 Selling expenses 130,000 Cash 60,000 Accounts receivable 90,000 Common stock 200,000 Cost of goods sold 825,000 Accumulated depreciation-machinery 180,000 Dividend revenue 20,000 Unearned service revenue 4,400 Interest payable 1,000 Land 370,000 Patents 100,000 Retained earnings, January 1, 2017 270,000 Interest expense 17,000 Administrative expenses 150,000 Dividends declared 24,000 Allowance for doubtful accounts 5,000 Notes payable (maturity 7/1/20) 200,000 Machinery 450,000 Materials 40,000 Accounts payable 60,000 The amount of income taxes applicable to income was $80,000, excluding the tax effect of the discontinued operations loss which amounted to $30,000. Instructions (20 pts) (a) Prepare a multiple-step income statement. (No EPS required) (b) Prepare a retained earnings statement