3: Answer the following question. (18 marks) During 2014, the Rakatoon Corporation had service revenue of $240,000, and operating expenses of $170,000. The company has a 15% income tax rate and did not make any installment during the year. Rakatoon decided to use the ASPE accounting principle. The company is authorized to issue unlimited common shares and 400,000$3 noncumulative preferred shares. In its first year the company issued 1000 noncumulative preferred shares at $60 per share and 5,150,$10 common shares. Share Dividends- Preferred- $750 Common- $25,750 a. Prepare an Income Statement including the Profit after tax. (5 marks) b. Prepare the statement of retained earnings