The following information was taken from the records of Roland Carlson Inc. for the year 2025: income tax applicable to income from continuing operations $187,000, income tax applicable to loss on discontinued operations $25,500, and unrealized holding gain on available-for-sale debt securities (net of tax) $15,000.

Shares outstanding during 2025 were 100,000.

Instructions

a. Prepare a single-step income statement (with respect to items in Income from operations).

b. Prepare a comprehensive income statement for 2025, using the two statement format.

c. Prepare a retained earnings statement for 2025.

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Gain on sale of equipment Loss on discontinued operations Administrative expenses Rent revenue Loss on write-down of inventory $ 95,000 75,000 240,000 40,000 60,000 Cash dividends declared Retained earnings January 1, 2025 Cost of goods sold Selling expenses Sales revenue $ 150,000 600,000 850,000 300,000 1,900,000