Exercise 1: (60 points) During year 2021, Linston Inc. obtained an income after taxes from continuing activities of $1,293,000 During the month of November, an earthquake affected one of the company's plant and implied a loss before taxes of $160,000. Also, the company decided to sell a segment of activity. The segment generated losses before taxes prior to its disposal for $36,000. The sale of the assets of the segment implied a loss before taxes of $20,000 Finally, the accountant of the company decided to change the depreciation method of the assets from straight line to double declining balance method. This implied an additional expense of $23,000 Tax rate is 25%. 1.- Prepare the income statement of the company and calculate the net income obtained in 2021 (30 points) 2.- Prepare the earning per share figure for each section of the income statement taking into account that the company had an average of 80,000 shares of common stocks outstanding throughout year 2021, and 10% preferred stocks outstanding for a total amount of $1,200,000. (30 points) Exercise 1: (60 points) During year 2021, Linston Inc. obtained an income after taxes from continuing activities of $1,293,000 During the month of November, an earthquake affected one of the company's plant and implied a loss before taxes of $160,000. Also, the company decided to sell a segment of activity. The segment generated losses before taxes prior to its disposal for $36,000. The sale of the assets of the segment implied a loss before taxes of $20,000 Finally, the accountant of the company decided to change the depreciation method of the assets from straight line to double declining balance method. This implied an additional expense of $23,000 Tax rate is 25%. 1.- Prepare the income statement of the company and calculate the net income obtained in 2021 (30 points) 2.- Prepare the earning per share figure for each section of the income statement taking into account that the company had an average of 80,000 shares of common stocks outstanding throughout year 2021, and 10% preferred stocks outstanding for a total amount of $1,200,000. (30 points)