At the beginning of its 2013 calendar-year accounting period, Commet, Inc. had retained earnings of $6,500,000 During 2013, Commet reported income from continuing operations before taxes of $1,100,000. The following additional transactions occurred In 2013 but were not included in the $1,100,000. Assume all of the following were material, 1. Commet had a restructuring charge of 516,000 (pre-tax). 2. Commet had an uninsured flood loss of $20.000 (Pie-tax) which was considered to be extraordinary. 3. During 2013, Commet decided to sell an unprofitable segment of its business, The sale of this segment qualifies as a discontinued operation for financial reporting purposes However, at the end of 2013, the company had yet to sell the segment On December 31, 2013 the segment assets had a lair value minus anticipated costs to sell of 53,700,000 and a book value of $4,200.000 For the year, the segment reported an operating loss of $500,000, 4. Commet declared and paid cash dividends of 570,000 on its common stock. S. At the beginning of 2010, the company purchased a machine for $50,000 that they expensed during 2010. The company would normally have used the straight-line depreciation method with a $500 salvage value and 9 year useful life. This was discovered as the accountant was reviewing the information for the 2013 financial statements. Depreciation expense on this machine for 2013 was not included in the $1,100,000 above. a. Prepare an income statement for the year 2013, beginning with Income from Continuing Operations before Taxes. Assume the tax rate was 40%. b. What is the ending Retained Earnings balance for Commet, Inc. as of December 31, 2013