Question 1: The following is trial balance of Sigma Corp. at December 31, 2019. Sigma Corporation Trial Balance December 31, 2019 Account Titles Debit Credit Cash 685,000 Accounts Receivable 1,695,000 Inventory 2,185,000 Equipment 8,600,000 Accounts payable 1,610,000 Salaries payable 360,000 Common stock 1,600,000 Additional paid-in capital 3,390,000 Retained earnings 3,350,000 Net sales-Regular 10,900,000 Net sales-Plastics (discontinued) 2,100,000 Cost of goods sold- Regular 5,800,000 Cost of goods sold-Plastics (discontinued) 1,250,000 Loss on sale of equipment-Regular 60,000 Selling expenses-regular 1,400,000 Administrative expenses-regular 1,200,000 Selling expenses-Plastics (discontinued) 440,000 Administrative expenses-Plastics (discontinued) 220,000 Interest revenue-Regular 75,000 Gain on disposal of plastics division (discontinued) 150,000 Total 23,535,000 23,535,000 Additional information: On October 31, 2019 Sigma Corporation sold its plastics Division for $2,950,000 when the carrying amount was $2,800,000. For financial statement reporting, this sale was considered a sale of discontinued operation. Instructions Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. A preferred dividend totaling 55 000 was approved for the year (EPS) . Ignore income tax