Please set up as an Income Statement and Statement of Retained Earnings

Selected data for the Clinks company for 2020 are given below: Common stock-$5 par value $1,000,000 Sales, net $800,000 Selling and administrative expenses $150,000 Cash dividends declared and paid $40,000 Cost of goods sold $380,000 Depreciation expense $55.000 Interest Revenue $6,000 Loss on write-down of obsolete inventory Retained earnings (as of 12-31-19) Operating loss on discontinued Sand Division up to point of sale in 2020 Loss on disposal of Sand Division $19.000 $960,000 $12,000 $94,000 Assume the applicable federal income tax rate is 35 %. All of the items of expense, revenue, and loss are included in the computation of taxable income.. In addition, the company discovered that in 2019 it had erroneously charged to expense the $74,000 cost of a tract of land purchased that year and had made the same error on its tax return for 2019 Required: A. Prepare the income statement for the year 2020. B. Prepare a statement of retained earnings for the year ended December 31, 2020. USE THIS FORMAT A Clinks Company Income Statement For the Year Ended December 31, 2020 B Clinks Company Statement of Retained Earnings For the Year Ended December 31, 2020