Attached is information for the Blue Company for 20X2. The following additional information is also available for the company. BLUE COMPANY ADDITIONAL INFORMATION AVAILABLE FOR PREPARING INCOME STATEMENT FOR YEAR 20X2 (1) On September 1, 20X2 (the disposal date), Blue sold one of its segments (a product line) for a gain (before tax) of $550,000. The board of directors had adopted a formal plan to dispose of the segment on January 1, 20X2. During the period January 1 to August 31, the discontinued segment incurred an operating loss (before tax) of $480,000. This loss is not included in any of the numbers shown in the attached financial information. Included in selling and administrative expenses is bad debt expense of $18,000. Blue calculates its bad debt expense as a percentage of sales. In 20X0 and 20X1, the percentage was 0.5%. In 20X2, the percentage was changed to 1%. (3) The company's average tax rate for 20X2 is 30%. The company had 20,000 shares of common stock outstanding throughout the year, REQUIRED: (1) (2) Using the attached form, prepare, in proper form, based on current generally accepted accounting principles, a multiple step income statement for 20x2. Using the attached form, prepare, in proper form, a statement of retained earnings for 20X2 BLUE COMPANY FINANCIAL INFORMATION FROM ACCOUNTING RECORDS FOR YEAR 20X2 Collections of credit sales $ 1,100,000 Selling and administrative expenses 290,000 Sales revenue 1,900,000 Loss from early extinguishment of debt (before tax) 340,000 Cash dividers declared on Blue Company common stock 34,000 Retained earnings, January 1, 20X1 800,000 Casualty loss (before tax) (considered unusual and infrequent) 450,000 Other revenues 180,000 Gain from transactions in foreign currencies (before tax) 220,000 Proceeds from sale of Blue Company common stock 60,000 Other expenses 120,000 Cost of goods sold 1,100,000 Adjustment to financial statements resulting from computation error in depreciation expense in 20X0 (before tax) 460,000