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Rockstar Company Income Statement For the year ended December 31, 2019 Net sales $1,575,000 Costs and expenses: Cost of goods sold 475,000 Selling, general and administrative expenses 140,000 Salaries expense 25.000 Total costs and expenses 640,000 Income before income taxes 935,000 Income taxes 233.250 Net income $701,250 Rockstar Company hired an accountant that did not take A310 or A311 and as a result included the following items in selling general and administrative expenses. . Rockstar sold equipment for $30,000. The machine had originally cost $80,000 and had accumulated depreciation of $30,000 The company discontinued operations of one of its subsidiaries during the current year at a loss of $190.000 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $100.000 before taxes: the loss from disposal of the subsidiary was 590.000 before taxes. The company recorded a $135.000 gain on the condemnation of some of its property Salaries expense 25.000 Total costs and expenses 640,000 Income before income taxes 935,000 Income taxes 233.750 Net income $701,250 Rockstar Company hired an accountant that did not take A310 or A311 and as a result included the following items in selling, general and administrative expenses. . Rockstar sold equipment for $30,000. The machine had originally cost $80,000 and had accumulated depreciation of $30,000. The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $100,000 before taxes: the loss from disposal of the subsidiary was $90,000 before taxes. The company recorded a $135.000 gain on the condemnation of some of its property. In addition, Rockstar had the following additional information available: . Rockstar had 50,000 shares of preferred stock and 275,000 shares of common stock outstanding during 2018 and a tax rate of 25%. Rockstar paid a cash dividend of 16,500 combined to both classes of shareholders: $6,500 to preferred shareholders and the remainder to common shareholders. Instructions: Using the multiple-step format, prepare a corrected income statement including the appropriate per share disclosures