8. Award: 11.11 out of 11.11 points The following income statement was prepared by a new and inexperienced employee in the accounting department of Phoenix, Inc., a business organized as a corporation. PHOENIX, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Net sales $10,800,000 Gain on sale of treasury stock 62,000 Excess of issuance price over par value of capital stock 510,000 Prior period adjustment (net of income tax) 96,000 Total revenue $ 11,468,000 Less: Cost of goods sold $ 6,000,000 Selling expenses 1,104,000 General and administrative expenses 1,896.000 Loss from settlement of litigation 24,000 Income tax on continuing operations 720.000 Operating loss on discontinued operations (net of income tax benefit) 252,000 Loss on disposal of discontinued operations (net of income tax benefit) 420,000 Dividends declared on common stock 350,000 Total costs and expenses 10.766,000 Net income 702,000 Required: a. Prepare a corrected income statement for the year ended December 31, 2018. Include at the bottom of your income statement all appropriate earnings per share figures. Assume that throughout the year the company had outstanding a weighted average of 180,000 shares of a single class of capital stock. b. Prepare a statement of retained earnings for 2018. (As originally reported, retained earnings at December 31, 2017, amounted to $2,175,000.)