1. Presented below are the income statement items from Batcho Ball Inc. for the year ended December 31, 2021. Sales revenue Cost of goods sold $ 2,700,000 $ 1,150,000 Rent revenue $ 15,000 Gain from sale of equipment 28,000 Income from operation of discontinued operation (Longhorn Division) $ 20,000 Dividends declared and paid 100,000 Selling expenses $ 290,000 General & administrative expenses $ 190,000 Loss from warehouse fire $ 30,000 Gain on disposal of discontinued operation (Longhorn Division) 50,000 Batcho Ball discovered an error in August of 2021. Depreciation expense on equipment purchased 1/1/17 had been calculated incorrectly. The bookkeeper had calculated and recorded depreciation expense of $2,000 per year when then correct amount was $2,200. The correct amount of depreciation expense was recorded for the current year (2021). Additionally, Batcho Ball made a change in an accounting principle during the year that resulted in a cumulative effect adjustment of $60,000 (net of tax) that increased Retained Earnings. Instructions: Using the information above, prepare a condensed multiple-step income statement and statement of retained earnings. The retained earnings balance at the beginning of the year was $137,500. Assume a tax rate of 21% and 100,000 shares of common stock outstanding during 2021. Calculations may be rounded to the nearest dollar.