The ABC firm shows the following information for 2019: revenues of $80,000, cost of goods sold of $22,000, interest expense of $4,000, depreciation of $3,500, dividends paid of $2,100, and selling and administrative expenses of $7,000. Assume the tax rate is 20 percent. If the retained earnings on December 31, 2018 was 20,000,

find (step by step) :

a) EBIT

b) Retained earnings on December 31, 2019?