1. The following balances were taken from the books of PK Corp. on December 31, 2021. Interest revenue Cash Sales revenue 86,000 Accounts receivable Prepaid insurance Sales returns and allowances Allowance for doubtful accounts Sales discounts Land Equipment Buildings 51,000 1,280,000 150,000 20,000 150,000 7,000 45,000 100,000 200,000 140,000 Cost of goods sold 621,000 Cash dividend-ordinary stocks 5,000 Cash dividend-preferred stocks 7,000 Notes receivable 155,000 Selling expenses 194,000 Accounts payable 170,000 Bonds payable 100,000 Administrative and general expenses 97,000 Unearned revenue 32,000 Interest expense 60,000 Notes payable 100,000 Loss from impairment of inventory 120,000 Share capital-ordinary 500,000 Retained earnings 21,000 Assume the total effective tax rate on all items is 25%. Instructions Prepare an income statement with EPS. Note that 100,000 ordinary shares and 7,000 preferred shares were outstanding during the year.