Presented below is information related to Farr Company.

Retained earnings, December 31, 2020 $ 650,000

Sales revenue 1,600,000

Selling and administrative expenses 290,000

Discontinued operations loss (pre-tax) 290,000

Cash dividends declared on common stock 33,600

Cost of goods sold 880,000

Gain resulting from computation error on depreciation charge in 2019 (pre-tax) 520,000

Other revenue 120,000

Other expenses 100,000

Instructions

Prepare in good form a multiple-step income statement for the year 2021. Assume a 20% tax rate and that 80,000 shares of common stock were outstanding during the year.