Question 4 The ledger of Pharoah Corporation at November 30, 2017, contains the following summary data: Cash dividends-common $68,000 Operating expenses $1,116,000 Cash dividends-preferred 28,000 Other comprehensive income-loss on 86,000 equity investments (before income tax) Common shares 323,000 Rent revenue 54,000 Cost of goods sold 7,340,000 Preferred shares ($5 noncumulative) 396,000 Depreciation expense 356,000 Retained earnings, December 1, 2016 747,000 Sales 9,026,000 Your analysis reveals the following additional information: 1. The company has a 25% income tax rate. 2. The communications devices division was discontinued on August 31. The profit from operations for the division up to that day was $18,200 before income tax. The division was sold at a loss of $78,000 before income tax. 3. There were 200,000 common and 5,000 preferred shares issued on December 1, 2016, with no changes during the year. (a) Prepare a multiple-step income statement for the year. PHAROAH CORPORATION Income Statement Year Ended November 30, 2017 Sales 9,026,000 $ Cost of Goods Sold 7.340,000 16860@@