c. Compute the ending retained earnings balance at December 31, 2020. _____________

Preparing an Income Statement and a Statement of Comprehensive Income The following pretax amounts are taken from the adjusted trial balance of Avoca Auto Corp. at December 31, 2020, its annual year-end. $468,000 198,000 144,000 36,000 14,400 Sales revenue Cost of goods sold Operating expenses Gain on debt retirement Interest expense Loss from discontinued operations Retained earnings balance, December 31, 2019 Dividends declared and paid Unrealized holding gain on debt investment securities, net of tax Common stock, weighted average shares outstanding 90,000 54,000 45,000 7,200 18,000 shares a. Prepare a single-step income statement. Assume an average 25% tax rate on all items. Include earnings per share disclosures. Avoca Auto Corp. Income Statement For the Year Ended December 31, 2020 0 0 Total revenues and gains 0 0 0 > 0 Total expenses and losses 0 0 0 Income from continuing operations 0 0 $ 0 Per share: $ 0 0 $ 0 b. Prepare a comprehensive income statement by showing a separate but consecutive statement of comprehensive income. Ignore earnings per share disclosures. Avoca Auto Corp. Income Statement For the Year Ended December 31, 2020 $ 0 0 Total revenues and gains 0 0 0 0 Total expenses and losses 0 0 0 Income from continuing operations 0 0 $ 0 Avoca Auto Corp. Comprehensive Income Statement For the Year Ended December 31, 2020 $ 0 o $ 0