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Elements from the adjusted trial balance for Maggie Co., a retailer, for the fiscal year end (12/31) 2015 are: Accounts Receivable$555,000 Accumulated Depr.-equipment450,000 Accumulated Depr.-buildings360,000

Elements from the adjusted trial balance for Maggie Co., a retailer, for the fiscal year end (12/31) 2015 are:

Accounts Receivable$555,000

Accumulated Depr.-equipment450,000

Accumulated Depr.-buildings360,000

Allowance for doubtful accts.36,000

Common Stock2,000,000

Depreciation Expense (equipment)50,000

Depreciation Expense (buildings)60,000

Dividends (common stock)120,000

Dividends Payable30,000

Insurance Expense35,000

Interest Expense40,000

Interest Payable20,000

Notes Payable (1/1/25)1,000,000

Prepaid Insurance95,000

Purchases975,000

Rent Receivable15,000

Rent Revenue90,000

Retained Earnings (1/1/15)818,000

Salaries Expense775,000

Salaries Payable25,000

Sales Returns13,000

Sales Revenue2,975,000

Additional information, not contained in the above, is as follows:

a.Bad Debt expense of $12,000 for 2015 has not yet been recorded.

b.An internal audit discovered that amortization expense of intangible assets for 2013, 2014 and 2015 was not recorded by the amount of $41,000 per year (no closing entries for 2015 have been made).

c.The company sold its only investment in held-to-maturity securities during the current year at a gain of $145,000.This gain is considered unusual in nature and infrequent in occurrence.

d.At the beginning of 2015, Maggie sold equipment for $50,000.The machine originally cost $76,000 and had accumulated depreciation of $32,000.

e.The company totally discontinued its mining operations during the year.The loss on operations of the discontinued subsidiary was $80,000 before taxes while there was a gain on disposal of mining assets of$120,000 before taxes.

f.Maggie uses a periodic inventory system and Inventory (1/1/15) is $175,000 and Inventory (12/31/15) is $225,000.

g.Unrealized (holding) gain on available-for-sale securities, net of tax, for 2015 is $32,000.

Required:Prepare in good form an income statement/statement of comprehensive income (multiple step) and a statement of retained earnings for the year ended 2015. Assume a 30% tax rate unless indicated otherwise.Maggie has 500,000 shares of common stock outstanding on December 31, 2015.

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