5.2.1 INSTRUCTIONS: Complete exercises A and B. A. Compute the Net Income based on the information provided below: Interest revenue $ 86,000 Accumulated depreciation equipment Cash 51,000 Accumulated depreciation-buildings Sales revenue 1,380,000 Notes receivable Accounts receivable 150,000 Selling expenses Prepaid insurance 20,000 Accounts payable Sales returns and allowances 150,000 Bonds payable Allowance for doubtful accounts 7,000 Administrative and general expenses Sales discounts 45,000 Accrued liabilities Land 100,000 Interest expense Equipment 200,000 Notes payable Buildings 140,000 Loss from earthquake damage Cost of goods sold 621,000 Common stock Retained earnings Assume the total effective tax rate on all items is 20% $ 40,000 28.000 155,000 194,000 170,000 100,000 97,000 32,000 60,000 100,000 150,000 500,000 21,000 B. Compute the Earnings per share based on the information provided below: Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue $1,300,000 Write-off of inventory due to obsolescence 780,000 Depreciation expense omitted by accident in 2019 65,000 Casualty loss 48,000 Cash dividends declared 20,000 Retained earnings at December 31, 2019 7.000 Effective tax rate of 20% on all items $ 80.000 55.000 50,000 45,000 980,000