(Multiple-Step Statement with Retained Earnings Statement)

(LO 3, 4, 6) Presented below is information related to Ivan Calderon Corp. for the year 2017.

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 2016	55,000
Selling expenses	65,000	Casualty loss	50,000
Administrative expenses	48,000	Cash dividends declared	45,000
Dividend revenue	20,000	Retained earnings at December 31, 2016	980,000
Interest revenue	7,000	Effective tax rate of 34% on all items

Instructions

(a)

Prepare a multiple-step income statement for 2017. Assume that 60,000 shares of common stock are outstanding for the entire year.

(b)

Prepare a separate retained earnings statement for 2017.