Preparing an Income Statement and a Statement of Comprehensive Income The following pretax amounts are taken from the adjusted trial balance of Avoca Auto Corp. at December 31, 2020, its annual year-end. Sales revenue Cost of goods sold Operating expenses Gain on debt retirement Interest expense $390,000 165,000 120,000 30,000 12,000 75,000 45,000 37,500 Unrealized holding gain on debt investment securities, net of tax 6,000 15,000 shares Loss from discontinued operations Retained earnings balance, December 31, 2019 Dividends declared and paid Common stock, weighted average shares outstanding Required a. Prepare a single-step income statement. Assume an average 25% tax rate on all items. Include earnings per share disclosures. b. Prepare a comprehensive income statement by showing a separate but consecutive statement of comprehensive income. Ignore earnings per s disclosures b. Prepare a comprehensive income statement by showing a separate but consecutive statement of comprehensive income. Ignore earnings per sh disclosures. c. Compute the ending retained earnings balance at December 31, 2020. Enter revenues and gains and expenses and losses in the order of the largest dollar amount to the smallest dollar amount. Do not use negative signs with any of your answers. Enter the answers for per share amounts in dollars and cents, rounded to the nearest penny. Single-step Income Statement Statement of Comprehensive Income Retained Earnings Balance a. Prepare a single-step income statement. Assume an average 25% tax rate on all items. Include earnings per share disclosures. Avoca Auto Corp. Income Statement Revenues and gains Sales revenue For the Year Ended December 31, 2020 Gain on debt retirement $ 390,000 30,000 Total revenues and gains 420,000 Sales revenue Gain on debt retirement Total revenues and gains Expenses and losses Cost of goods sold $ 390,000 , 30,000 420,000 165,000 Operating expenses 120,000 Interest expense 12,000 Total expenses and losses 297,000 Income before income taxes 123,000 Income tax expense 30,750 Income from continuing operations 92,250 Discontinued operations Loss from discontinued component, net of tax savings 56,250 Net income 36,000 Per share: Income from continuing operations 0 x Loss from discontinued component, net of tax savings Net income 0 x 0 x