At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,750,000 Discontinued operations loss (net of tax) 68,000 Selling expenses 135,000 Cash 75,000 Accounts receivable 105,000 Common stock 200,000 Cost of goods sold 795,000 Accumulated depreciation-machinery 205,000 Dividend revenue 9,000 Unearned service revenue 5,600 Interest payable 2,500 Land 385,000 Patents 125,000 Retained earnings, January 1, 2020 285,000 Interest expense 25,000 Administrative expenses 185,000 Dividends declared 29,000 Allowance for doubtful accounts 6,000 Notes payable (maturity 7/1/23) 200,000 Machinery 450,000 Materials 40,000 Accounts payable 60,000 The amount of income taxes applicable to income was $79,200, excluding the tax effect of the discontinued operations loss which amounted to $33,000. Instructions (a) Prepare a multiple-step income statement. (b) Prepare a retained earnings statement