1. Use the following income-related items to create a multistep income statement for 2022 including EPS disclosures. Assume a 20% tax rate (all amounts listed in thousands and pretax).

Cost of goods sold	1,400	Impairment of patent used in continuing operations	170
Dividend revenue from equity securities	70	Other selling, general and administrative expenses	300
Sales revenue	3,250	Interest expense	100
Unrealized gain on trading securities	40	Research and development	150
Interest revenue	20	Gain on sale of fixed asset	30
Depreciation and amortization	350	Restructuring costs	200
Salary and wage expense	300	Insurance expense	25
Utilities expense	10	Bad debt expense	15

In addition, the following information is available regarding a division the company decided to discontinue (all amounts in thousands).

Book value of assets	$5,100	Book value of liabilities	$2,700
Fair value of assets	$3,190	Fair value of liabilities	$1,700
Estimated selling costs	$200	Profit from operations of the division	$150

The company declared $300,000 of preferred dividends and had 1,000,000 shares of common stock outstanding throughout 2020.

2. Assuming the company in #1 above had a credit balance in its retained earnings account of $3,120,000, determine retained earnings at year-end.
3. Using the information from the company above, provide the adjusting entry that would have been recorded for tax expense as an adjusting entry at year-end (assuming the company makes only annual adjustments).
4. Assuming the company successfully sold its discontinued component in 2023 for $770,000. Not included in this price were disposal (selling) costs of $180,000. Determine the gain or loss from disposal, net of tax, that would be reported on the 2023 income statement.