Mantego Company listed the following selected pretax items as of December 31, 2019:

Additional information:
The preferred shares had been outstanding the entire year; annual dividends were declared and paid in 2019.
During 2019, 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 2019. The company is subject to a 30% income tax rate.

Required:
Prepare Mantego’s 2019 income statement (multiple-step) and the related note.

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