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A portion of the statement of income and retained earnings of Pierson Inc. for the current year follows. Income before extraordinary item $19,790,000 Extraordinary loss,
A portion of the statement of income and retained earnings of Pierson Inc. for the current year follows.
| Income before extraordinary item | $19,790,000 | |||
| Extraordinary loss, net of applicable income tax (Note 1) | 1,405,000 | |||
| Net income | 18,385,000 | |||
| Retained earnings at the beginning of the year | 83,380,000 | |||
| 101,765,000 | ||||
| Dividends declared: | ||||
| On preferred stock |
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