REQUIRED: Based on the above and the result of your audit, determine the following amounts/balances for the year ended December 31, 20x1:

7. Income from continuing operations ____________

8. Income (loss) from discontinued operations ____________

9. Net income ____________

CASE 2 The accountant for Batanes Company prepared the following income statement and retained earnings statement for the year ended December 31, 20x1: Batanes Corporation Income Statement For the Year Ended December 31, 20x1 Sales Revenue P1,568,000 Less: Selling expenses (156,800) Net Sales P1,411,200 Add: Interest income 18,400 Gain on sale of equipment 25,600 Gross Sales Revenue P1,455,200 Less: Cost of Operations Cost of goods sold P960,800 Correction of overstatement in last year's income due to error (net of P13,200 income tax credit) 30,800 Dividend costs (P4 per share) 32,000 Loss due to earthquake 33.600 (1,057,200) Income before income tax P398,000 Less: Income tax on income from continuing operations (99,840) Income after income tax P298, 160 Miscellaneous deductions: Loss from operations of discontinued segment XB (net of P7,200 income tax credit) P16,800 Administrative expenses 134,400 151,200) Net income P146,960 Batanes Corporation Retained Earnings Statement For the Year Ended December 31, 20x1 Retained Earnings, January 1, 20x1 P474,400 Add: Gain on sale of segment XB (net of P10,800 income tax) 25,200 Net income 146,960 Less: Interest expenses (27,200) Retained Earnings, December 31, 20x1 P619,360 The preceding account balances are correct but have been incorrectly classified in certain circumstances