CO Delta Corporation's capital structure consists of 20,000 common shares at December 31. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: of Sales......... Inventory, January 1, 2020.. Purchases.. Purchase discounts.... Inventory, December 31, 2020.. Tornado loss (net after $18,000 tax) Selling expenses.. Cash............ Accounts receivable. $1,300,000 150,000 728,000 18.000 130,000 42.000 148,000 60.000 90,000 Common shares... Accumulated depreciation.... Dividend revenue....... Unearned service revenue... 200,000 180,000 22,000 4,400 Accrued interest payable....... 1,000 Land.................. 370,000 Patents... 100,000 Retained earnings, January 1, 2020. 350,000 Interest expense.. 15,000 Prior years cumulative effect of change from straight-line to accelerated depreciation (net after $15,000 tax).. 45,000 General and administrative expenses..... 172,000 07353 2 10 11 Finish a Accrued interest payable. 1,000 Land 370,000 Patents 100.000 Retained earnings January 1, 2020. 350,000 Interest expense... 15.000 Prior years cumulative effect of change from straight-line to accelerated depreciation (net after $15.000 tax). 45.000 General and administrative expenses.... 172.000 52.750 5.000 200,000 450.000 40,000 60,000 Dividends declared... Allowance for doubtful accounts... Notes payable (maturity July 1, 2021).. Machinery and equipment. Materials and supplies inventory... Accounts payable......... Unless indicated otherwise, you may assume a 25% income tax rate. Required: a) Prepare, in good form, a multiple-step income statement (10 marks) b) Prepare, in good form, a retained earnings statement