Mantego Company listed the following selected pretax items as of December 31, 2013:

Additional information:
The preferred shares had been outstanding the entire year; annual dividends were declared and paid in 2013.
During 2013, 2,000 common shares were issued on July 2, and 6,000 common shares were issued on November 3. Common dividends of $12,500 were declared and paid in 2013. The company is subject to a 30% income tax rate.
Required:
Prepare Mantego's 2013 income statement (multiple-step) and the related note.

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Preferred stock, 896, $100 par, nonconvertible Common stock, $5 par Sales Cost of goods sold Gain on disposal of discontinued Division B $ 60,000 90,000 206,000 $131,000 8,00 15,000 Operating expenses 19,250 20,000 Loss from operations of discontinued Division B