e following pretax amounts were obtained from the financial records of Watson Company for 2021:

	Debit	Credit
Retained earnings (1/1/21)		847,000
Sales revenues		1,385,000
Rent revenue		360,000
Cost of goods sold	475,000
Selling and administrative expenses	289,000
Depreciation expense	250,000
Loss on accounting change	202,000
Loss on disposal of plant assets	105,000
Dividends declared	460,000

The companys tax rate is 25 percent.

1. Prepare an income statement for the year ended December 31, 2021.