(Multiple-step Statement with Retained Earnings) Presented below is information related to Ivan Calderon Corp. for the year 2004.

Net sales                      $1,300,000      Write-off of inventory due to obsolescence                $ 80,000

Cost of goods sold           780,000      Depreciation expense omitted by accident in 2003     55,000

Selling expenses                 65,000      Casualty loss (extraordinary item) before taxes           50,000

Administrative expenses  48,000      Dividends declared                                                             45,000

Dividend revenue              20,000      Retained earnings at December 31, 2003                    980,000

Interest revenue                  7,000      Effective tax rate of 34% on all items

(a) Prepare a multiple-step income statement for 2004. Assume that 60,000 shares of common stock are outstanding.

(b) Prepare a separate retained earnings statement for 2004.