Wright Company reports the following information for the year ended December 31, 2016:

Pretax income from continuing operations (a)	$160,000
Pretax income from operations of discontinued Division M	27,000
Pretax loss on disposal of Division M	(45,000)
Pretax correction of error in understating depreciation in 2015	(8,000)
Retained earnings, January 1, 2016	410,000
Cash dividends during 2016	48,000
Income tax payable (b)	41,000

a: Of this amount, revenues are $400,000 and expenses are $240,000.

b: Of this amount, $6,750 relates to the pretax income from the operations of discontinued Division M; pretax loss on the disposal of Division M resulted in an income tax savings of $11,250; and pretax correction of the depreciation error resulted in an income tax savings of $2,000.

Required:

1.	Prepare the year-end journal entry necessary to record the 2016 intraperiod income tax allocation.
2.	Prepare Wrights 2016 income statement and statement of retained earnings.