Retained earnings , January 1, 2020 2,250,000 Sales revenue 53,000,000 Cost of goods sold 33,000,000 Interest revenue 120,000 Selling and administrative expenses 8,900,000 Write-off of goodwill 2,100,000 Income taxes for 2020 3,650,000 Loss on the sale of investments 53,000 Loss due to hurricane damage 1,100,000 Gain on the disposition of the retail division (net of tax) 23,000 Loss on operations of the retail division (net of tax) 231,000 Dividends declared on common stock 350,000 Dividends declared on preferred stock 125,000

On September 15, Karlin sold the retail operations to Shark Corp Assume that 60,000 shares of common stock are outstanding.

INSTRUCTIONS: 1. multiple-step income statement 2. separate Retained Earnings Statement