Comprehensive Problem #1: Information below is for the Tiger Eye Corporation for the year ended December 31, 2015:

Net Sales $2,500,000

Cost of Goods Sold 1,600,000

Selling Expenses 180,000

Administrative Expenses 250,000

Dividend Revenue 45,000

Gain on sale of Equipment 5,000

Interest Expense 12,000

Write-off of obsolete inventory 85,000

Correction for understatement of depreciation expense in prior years 70,000

Extraordinary loss due to fire 95,000

Income from operations of a discontinued segment 120,000

Loss on disposal of discontinued segment 63,000

Dividends declared:

Preferred 200,000

Common 250,000

Retained Earnings, 12/31/2014 1,350,000

There were 600,000 shares of common stock outstanding at the beginning of the year and 800,000 shares outstanding at the end of the year. The income tax rate is 25% for all years.

Required:

(1) Prepare a multi-step income statement for 2015. Include earning per share information.

(2) Prepare a separate statement of retained earnings for 2015.