A. Prepare in good form, a corrected multiple step income statement for 2019 (Ignore information in part C)

B. Prepare a statement of retained earnings for December 31, 2019 (ignore information in Part C).

C. Assume during 2020 the discontinuance of the womens accessories division was completed with the following results. Cash for sale of equipment with original book value of $70,000 was $53,000 Operations: sales $20,000, cost of goods sold $17,000, expenses $12,000 Using this information prepare in good form the discontinued operations section of the 2019 Income Statement--again assuming a 30% tax rate.

Income Statement For the year ended December 31, 2019 Sales 2,200,000. Cost of Goods Sold 1,150.000 Gross Profit 1,050,000 Selling and General Expenses 680,000 Loss on Fire 200,000 Gain on equipment (10,000) Interest Expense 12.000 882,000 Net Income before taxes 168,000 Income taxes at 30% 50,400 Net Income 117,600 The following information becomes available to you before the 2019 statements are issued. 1. On July 1, 2019, the decision was made to discontinue the sale of the women's accessories. Operating results for the segment are included in the above income statement Results for the discontinued segment were as follows: Sales Cost of goods sold Selling and general expenses Jan. 1 - June 30, 2019 220,000 150,000 90,000 July 1 -Dec.31, 2019 100,000 80,000 60,000 2. There will continue to be some operations in the first two months of 2020. It is predicted that the operating loss will be $15,000 3. Late in 2019, equipment used by this segment with a book value of $140,000 was sold for $150,000. The gain is reflected in the above income statement. Remaining equipment used by this segment has a book value of $70,000 and it is anticipated that it will sell for a net price of $50,000. 4. You might think the fire loss is extraordinary, but it is no longer shown net of tax. It is just "other" 5. The inventory balance on Dec. 31, 2018 (end of prior year) was discovered to be understated by $15,000. All inventory involved pertained to continuing operations. 6. Interest expense applicable to financing of inventory of $6,000 is included in Selling and General Expenses. 7. Retained earnings on Dec. 31, 2018 was $340,000. Dividends paid during 2019 were $30,000 A. Prepare in good form, a corrected multiple step income statement for 2019 (Ignore information in part C) B. Prepare a statement of retained earnings for December 31, 2019 (ignore information in Part C). C. Assume during 2020 the discontinuance of the women's accessories division was completed with the following results. Cash for sale of equipment with original book value of $70,000 was $53,000 Operations: sales $20,000, cost of goods sold $17,000, expenses $12,000 Using this information prepare in good form the discontinued operations section of the 2019 Income Statement--again assuming a 30% tax rate. Income Statement For the year ended December 31, 2019 Sales 2,200,000. Cost of Goods Sold 1,150.000 Gross Profit 1,050,000 Selling and General Expenses 680,000 Loss on Fire 200,000 Gain on equipment (10,000) Interest Expense 12.000 882,000 Net Income before taxes 168,000 Income taxes at 30% 50,400 Net Income 117,600 The following information becomes available to you before the 2019 statements are issued. 1. On July 1, 2019, the decision was made to discontinue the sale of the women's accessories. Operating results for the segment are included in the above income statement Results for the discontinued segment were as follows: Sales Cost of goods sold Selling and general expenses Jan. 1 - June 30, 2019 220,000 150,000 90,000 July 1 -Dec.31, 2019 100,000 80,000 60,000 2. There will continue to be some operations in the first two months of 2020. It is predicted that the operating loss will be $15,000 3. Late in 2019, equipment used by this segment with a book value of $140,000 was sold for $150,000. The gain is reflected in the above income statement. Remaining equipment used by this segment has a book value of $70,000 and it is anticipated that it will sell for a net price of $50,000. 4. You might think the fire loss is extraordinary, but it is no longer shown net of tax. It is just "other" 5. The inventory balance on Dec. 31, 2018 (end of prior year) was discovered to be understated by $15,000. All inventory involved pertained to continuing operations. 6. Interest expense applicable to financing of inventory of $6,000 is included in Selling and General Expenses. 7. Retained earnings on Dec. 31, 2018 was $340,000. Dividends paid during 2019 were $30,000 A. Prepare in good form, a corrected multiple step income statement for 2019 (Ignore information in part C) B. Prepare a statement of retained earnings for December 31, 2019 (ignore information in Part C). C. Assume during 2020 the discontinuance of the women's accessories division was completed with the following results. Cash for sale of equipment with original book value of $70,000 was $53,000 Operations: sales $20,000, cost of goods sold $17,000, expenses $12,000 Using this information prepare in good form the discontinued operations section of the 2019 Income Statement--again assuming a 30% tax rate