Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple$-$stepWaterway 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.

versus a single$-$step format. The discussion involves the following $2020$ information related to Sunland Company $($ $$000$ omitted$).$

Administrative expense

Common shares outstanding for $2020$ total $24,124(000$ omitted$).$

a$.$ create a multiple $-$step income statement

b$.$ prepare a retained earnings statement