P5-19 LO 5.4 LO 5.5 LO 5.6 LO 5.8 LO 5.10 Comprehensive: Income Statement and Retained Earnings Milwaukee Manufacturing Company presents the following partial list of account balances, after adjustments, as of December 31, 2016: Sales Salaries Expense $ 27,400 Sales Personnel Travel Expenses $ 8,300 Miscellaneous Administrative Expenses 3,000 Property Taxes and Insurance Expense 9,000 Sales 463,200 Retained Earnings, January 1, 2016 200,800 Interest Revenue 3,200 Depreciation Expense: Sales Equipment 9,000 Office and Administrative Salaries 30,000 Advertising Expense 15,700 Delivery Expenses 11,700 Miscellaneous Rent Revenue 5,900 Loss on Sale of Factory Equipment (pretax) 4,100 Common Stock, $10 par 200,000 Cost of Goods Sold 232,200 Depreciation Expense: Buildings and Office Equipment 14,400 (continued) SHOW ME HOW OUT Ulalement du tile Slalon u b. The following information is also available but is not reflected in the preceding accounts: a. The company sold Division E (a major component of the company) on Augu (a major component of the company) on August 2, 2016. During 2010, Division E had incurred a pretax loss from operations of $16.000. However, because the pany could vertically integrate Division E into its facilities. Milwaukee Manufacturing was able to l os a $42,000 pretax gain on the sale. On January 2, 2016, without warning, a foreign country expropriated a factory of Milwaukee ing which had been operating in that country. As a result of that expropriation, the company has moun a pretax loss of $30,000. The common stock was outstanding for the entire year. A cash dividend of $1.20 per share was declared and paid in 2016. d. The 2016 income tax expense totals $31,050 and consists of the following: Tax expense on income from continuing operations $32,250 Tax credit on Division E operating loss (4,800) Tax expense on gain from sale of Division E 12,600 Tax credit on loss from expropriation 19,000) $31,050 Required: 1. As supporting documents for Requirement 2, prepare separate supporting schedules for selling expenses and for general and administrative expenses include depreciation expense where applicable in these schedules). 2. Prepare a 2016 multiple-step income statement for Milwaukee Manufacturing. 3. Prepare a 2016 retained earnings statement