The following information is related to Blossom Company for 2017.

Retained earnings balance, January 1, 2017		$997,920
Sales Revenue		26,276,500
Cost of goods sold		16,204,700
Interest revenue		80,500
Selling and administrative expenses		4,747,500
Write-off of goodwill		826,300
Income taxes for 2017		1,345,000
Gain on the sale of investments		117,800
Loss due to flood damage		391,000
Loss on the disposition of the wholesale division (net of tax)		446,800
Loss on operations of the wholesale division (net of tax)		86,050
Dividends declared on common stock		227,100
Dividends declared on preferred stock		75,590

Blossom Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Blossom sold the wholesale operations to Rogers Company. During 2017, there were 518,000 shares of common stock outstanding all year.

Problem 4-1 The following information is related to Blossom Company for 2017. Retained earnings balance, January 1, 2017 Sales Revenue $997,920 26,276,500 16,204,700 80,500 4,747,500 826,300 1,345,000 117,800 391,000 446,800 86,050 227,100 75,590 Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2017 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock Blossom Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Blossom sold the wholesale operations to Rogers Company. During 2017, there were 518,000 shares of common stock outstanding all year BLOSSOM COMPANY Income Statement For the Year Ended December 31, 2017 Sales Revenue 26276500 (16204700) Cost of Goods Sold Gross Profit/(Loss) Selling and Administrative Expenses Income from Operations 10071800 (4747500) 5324300 Other Revenues and Gains Interest Revenue 80500 Gain on the Sale of Investments 117800 198300 Other Expenses and Losses Write-off of Goodwill 826300 Loss from Flood Damage 391000 1217300 Income from Continuing Operations Before Income Tax 4305300 Income Tax 1345000 Income from Continuing Operations 2960300 Discontinued Operations Loss on Disposal, Net of Tax 446800 Loss on Operations, Net of Tax 86050 (532850) 2427450 Income from Continuing Operations 758349 Discontinued Operations Loss on Disposal, Net of Tax 139582 Loss on Disposal, Net of Tax 446800 Loss on Operations, Net of Tax 86050 (532850) 2427450 Income from Continuing Operations 758349 Discontinued Operations Loss on Disposal, Net of Tax 139582 Loss on Operations, Net of Tax 26883 (166465) 591884 Net Income (Loss)