Sales Cost of Goods Sold Gross Profit Selling and General Expenses Loss on Fire Gain on equipment Interest Expense Net Income before taxes Income taxes at 30% Net Income 2,300,000. 1,150,000 1,150,000 680,000 200,000 (10,000) 12,000 882,000 268,000 80,400 187,600 The following information becomes available to you before the 2021 statements are issued. 1. On July 1, 2021, the decision was made to discontinue the sale of the women's accessories. Operating results for the segment are included in the above income statement Results for the discontinued segment were as follows: Sales Cost of goods sold Selling and general expenses Jan. 1 June 30, 2021 220,000 July 1-Dec.31, 2021 110,000 150,000 80,000 90,000 60,000 2. There will continue to be some operations in the first two months of 2022. It is predicted that the operating loss will be $15,000 3. Late in 2021, equipment used by this segment with a book value of $140,000 was sold for $150,000. The gain is reflected in the above income statement. Remaining equipment used by this segment has a book value of $70,000 and it is anticipated that it will sell for a net price of $45,000. 4. You might think the fire loss is extraordinary, but it is no longer shown net of tax. It is just "other" 5. The inventory balance on Dec. 31, 2020 (end of prior year) was discovered to be understated by $20,000. All inventory involved pertained to continuing operations. 6. Interest expense applicable to financing of inventory of $6,000 is included in Selling and General Expenses. 7. Retained earnings on Dec. 31, 2020, was $340,000. Dividends paid during 2021 were $30,000 A. Prepare in good form, a corrected multiple step income statement for 2021 (Ignore information in part C) B. Prepare a statement of retained earnings for December 31, 2021 (ignore information in Part C). C. Assume during 2022 the discontinuance of the women's accessories division was completed with the following results. Cash for sale of equipment with original book value of $70,000 was $53,000 Operations: sales $20,000, cost of goods sold $17,000, expenses $12,000 Using this information prepare in good form the discontinued operations section of the 2021 Income Statement--again assuming a 30% tax rate.