The following information was taken from the records of Rolan Carlson Inc. for the year 2014: income tax applicable to income from continuing operations $187000, income tax applicable to loss on discontinued operations $25500, and unrealized holding gain on available-for-sale securities $15000.

Gain on sale of equipment $95000 Cash dividends declared $150000

Loss on discontinued operations 75000 Retained earnings January 1, 2014 600000

Administrative expenses 240000 Cost of goods sold 850000

Rent revenue 40000 Selling expenses 300000

Loss on write-down of inventory 60000 Sales revenue 1900000

Shares outstanding during 2014 were 100000

Instructions:

(a) Prepare a single-step income statement.

(b) Prepare a comprehensive income statement for 2014, using the two statement format.

(c) Prepare a retained earnings statement for 2014.