A combined statement of income and retained earnings for Concord Ltd. for the year ended December 31, 2023, follows. (As a private company, Concord 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 Concord. Concord Ltd. Combined Statement of Income and Retained Earnings For the Year Ended December 31, 2023 Sales revenue $ 5,580,000 Cost of goods sold 2,900,000 Gross profit 2,680,000 Selling, general, and administrative expenses 1,700,000 Income before income tax 980,000 Income tax expense 294,000 Income tax expense 294,000 Income before unusual item 686,000 Loss from tornado (net of taxes) 445,900 Net income 240,100 Retained earnings, January 1 926,100 Retained earnings, December 31 $ 1,166,200 For each of the three unrelated situations, prepare a revised combined statement of income and retained earnings for Concord. The company has a 30% income tax rate. (a) Situation 1. In late 2023, the company discontinued its apparel fabric division. The loss on the disposal of this discontinued division amounted to $620,000. This amount was included as part of selling, general, and administrative expenses. Before its disposal, the division reported the following for 2023: sales revenue of $1.30 million; cost of goods sold of $650,000; and selling. general, and administrative expenses of $487,500. Sales Revenue Cost of Goods Sold Gross Profit (1) Concord Ltd. Combined Statement of Income and Retained Earnings For the Year Ended December 31, 2023 Selling, General and Administrative Expenses Income before Income Tax and Discontinued Operations Other Expenses and Losses Loss from Tornado Net Income/(Loss) Retained Earnings, January 1