*Problem 4-1 The following information is related to Novak Company for 2017 Retained earnings balance, January 1, 2017 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2017 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $984,980 26,208,100 16,176,000 80,400 4,730,800 822,700 1,410,700 118,000 398,500 443,800 93,420 274,100 75,970 Novak Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Novak sold the wholesale operations to Rogers Company. During 2017, there were 494,700 shares of common stock outstanding all year