The 31 December 20X2 year-end trial balance for Dynamics Ltd., a private company, showed the following account balances:

Dr./(Cr.)Retained earnings, 31 December 20X1$(8,700,000)Sales revenue(9,700,000)Dividend income from investments(73,000)Cost of sales5,150,000Impairment on discontinued plant assets, held-for-sale (before tax)830,000General, selling, and administrative expenses1,865,000Interest expense108,000Reduction in prior years' earnings due to change in accounting policy, cumulative to 31 December 20X1 (before tax)440,000Dividends declared, to be paid 15 January 20X3730,000Loss due to bankruptcy of major client125,000

The company pays income tax at a rate of 20%.

Required:

income statement for the year ended 31 December 20X2.(Enteranswers in thousands, not in whole Canadian dollar.)

statement of retained earnings for the year ended 31 December 20X2.(Enter answers in thousands, not in whole Canadian dollar.)