Preparing a Multiple-Step Income Statement and a Retained Earnings Statement The following pretax amounts are taken from the accounts of J&J Inc. at December 31, 2020, its annual year-end ($ thousands). Assume an average 25% tax rate on all items. Sales revenue Cost of goods sold Selling and administrative expenses Gain on sale of land held for speculation Prior period adjustment, correction of error from 2019, pretax (a debit) $510,000 255,000 135,000 45,000 24,000 3,000 Interest expense Cash dividends declared and paid Retained earnings, December 31, 2019 Common stock, outstanding. 7,500 154,500 25,000 shares Required a. Prepare a multiple-step income statement, including intraperiod income tax allocation and EPS disclosure. Do not use negative signs with any of your answers. Enter the answer for earnings per share in dollars and cents, rounded to the nearest penny. a. Prepare a multiple-step income statement, including intraperiod income tax allocation and EPS disclosure. Do not use negative signs with any of your answers. Enter the answer for earnings per share in dollars and cents, rounded to the nearest penny. J&J Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue $ Cost of goods sold Gross profit Selling and administrative expenses Operating income Other revenues and gains Gain on sale of land Other expenses and losses Interest expense Income before income taxes 510,000 255,000 255,000 135,000 120,000 45,000 3,000 Income tax expense 162,000 40,500 121,500 Net income $ Earnings per share $ 4.86 b. Determine the December 31, 2020, balance in retained earnings. $ 268,500 x