Sportswear, Inc. reported income from continuing operations before taxes during 2016 of $1, 782,000. Below are additional transactions that were overloaded end have not been accounted for on either the income statement or Retained Earnings Statement. The company is located in Oklahoma, City, and has been in business since 20x6. All of the following transactions are pre-tax. The company experienced an uninsured loss due to earthquake in the amount of $240,000. At the beginning of 2014, the company purchased equipment for $100,000, depreciating under the straight-line method. The equipment had a 10-year useful life, and a salvage value of $10,000. On January 1, 2016, it was discovered that the accountant has incorrectly recorded depreciation in the years 2014 and 2015, mistakenly using a 6-year useful life. Depreciation was correctly recorded for the year 2016. The company sold some securities that were held as part of a larger portfolio, resulting in a gain of $40,000. The company disposed of its lending division at a loss of $350,000. Assume this transaction meets the definition of a discontinued operation. The operating income from this division was $55,000 for the year. The company changed its method of inventory from average cost to FIFO. The change was implemented Jan. 1, 2016. Below is net income and retained earnings information for the years 2013 through 2015. The company paid $30,000 of dividends for 2016. Common shares outstanding for the year were 200,000. The company's tax rate is 38%. (A) Prepare a multiple-step income statement for the year 2016, starting with income from continuing operations before taxes. (B) Assume that the company is issuing comparative financial statements for 2014 and 2015, prepare a Retained Earnings Statement for each of the three years (2014, 2015 and 2016)