The following information is related to Dickinson Company for 2020.

Retained earnings balance, January 1, 2020............................................$ 980,000
Sales revenue.............................................................................................25,000,000
Cost of goods sold.....................................................................................16,000,000
Interest revenue...............................................................................................70,000
Selling and administrative expenses.........................................................4,700,000
Write-off of goodwill.......................................................................................820,000
Income taxes for 2020................................................................................1,244,000
Gain on the sale of investments...................................................................110,000
Loss due to flood damage............................................................................390,000
Loss on the disposition of the wholesale division (net of tax)..................440,000
Loss on operations of the wholesale division (net of tax)...........................90,000
Dividends declared on common stock.........................................................250,000
Dividends declared on preferred stock..........................................................80,000

Dickinson Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.

Instructions

Prepare a multiple-step income statement and a retained earnings statement.