The following information relates to the Po Company for the year ending December 31, 2019:

Cash dividends 2019 $ 35,000

Expenses 285,900

* Income tax payable 39,500

Pretax correction of error in understating depreciation in 2018 (7,500)

Pretax income from continuing operations 214,100

Pretax income from operations of discontinued division 33,600

Pretax loss on disposal of division (45,900)

Retained Earnings, January 1, 2019 734,000

Revenues 500,000

* Of this amount $4,800 relates to the pretax income from the operations of discontinued division pretax loss on the disposal of division resulted in a tax savings of $13,350 and pretax correction of the depreciation error resulted in a tax savings of $1,500.

Required:

1. Prepare the year end journal entry necessary to record the 2019 intraperiod income tax allocation.

2. Prepare Po's 2019 income statement and statement of retained earnings