A combined statement of income and retained earnings for Blue Spruce Ltd. for the year ended December 31, 2020, follows. (As a private company. Blue Spruce has elected to follow ASPE.) Also presented are three unrelated situations involving accounting changes and the classification of certain items as ordinary or unusual. Each situation is based on the combined statement of income and retained earnings of Blue Spruce Ltd. Blue Spruce Ltd. Combined Statement of Income and Retained Earnings For the Year Ended December 31, 2020 Sales revenue $ 5,970.000 Cost of goods sold 2.990.000 Gross profit 2.980.000 Selling general, and administrative expenses 1.820.000 Income before income tax 1.160,000 Income tax expense 290,000 Income before unusual item 870.000 Loss from tornado (net of taxes) 522.000 Net income 348.000 Retained earnings, January 1 1,131,000 Retained earnings. December 31 $ 1.479.000 For each of the three unrelated situations, prepare a revised combined statement of income and retained earnings for Blue Spruce Ltd. The company has a 25% income tax rate Situation 1. In late 2020, the company discontinued its apparel fabric division. The loss on the disposal of this discontinued division amounted to $590,000. This amount was included as part of selling general, and administrative expenses. Before its disposal, the ion reported the following for 2020: sales revenue of $1.22 million cost of goods sold of $610.000; and selling general, and administrative expenses of $469.700. (Round answers to decimal places, eg. 5,275.)