The following information is related to Waterway Company for 2020. Retained earnings balance, January 1, 2020 Sales Revenue Cost of goods sold $1,234,800 31,500,000 20,160,000 Interest revenue Selling and administrative expenses Write-off of goodwill 88,200 5,922,000 1,033,200 Income taxes for 2020 1,567,440 Gain on the sale of investments 138,600 Loss due to flood damage: 491,400 Loss on the disposition of the wholesale division (net of tax) 554,400 Loss on operations of the wholesale division (net of tax) 113,400 Dividends declared on common stock 315,000 Dividends declared on preferred stock 100,800 D Waterway Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Waterway sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.