Problem 4-01 The following information is related to Tamarisk Company for 2020. Retained earnings balance, January 1, 2020 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2020 $1,176,000 30,000,000 19,200,000 84,000 5,640,000 984,000 1,492,800 Gain on the sale of investments 132,000 Loss due to flood damage 468,000 Loss on the disposition of the wholesale division (net of tax) 528,000 Loss on operations of the wholesale division (net of tax) 108,000 Dividends declared on common stock 300,000 Dividends declared on preferred stock 96,000 Tamarisk Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Tamarisk sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.