only a and b need to be solved.

TUIT INC. Income Statement Year Ending December 31, 2017 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Impairment loss-goodwill Gain on sale of equipment Income before income tax Income tax expense Net income $338,150 165,000 173,150 120,000 53,150 $11,400 30,000 (2,000) 39,400 13,750 4,125 $ 9,625 Additional information: 1. Dividends on common shares in the amount of $6,000 were declared and paid during 2017. 2. Depreciation expense is included in operating expenses, as is salaries and wages expense of $69,000. 3. Equipment with a cost of $20,000 that was 70% depreciated was sold during 2017