Preparing a Multiple-Step Income Statement and a Retained Earnings Statement The following pretax amounts are taken from the accounts of J&J Inc. at December 31, 2020, its annual year-end ($ thousands). Assume an average 25% tax rate on all items. Sales revenue Cost of goods sold Selling and administrative expenses Gain on sale of land held for speculation Prior period adjustment, correction of error from 2019, pretax (a debit) Interest expense Cash dividends and paid Retained earnings, December 31, 2019 Common stock, outstanding. $272,000 136,000 72,000 24,000 12,800 1,600 4,000 82,400 25,000 shares Required a. Prepare a multiple-step income statement, including intraperiod income tax allocation and EPS disclosure. Do not use negative signs with any of your answers. Enter the answer for earnings per share in dollars and cents, rounded to the nearest penny. J&J Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue $ 272,000 Cost of goods sold A 136,000 Gross profit 136,000 Selling and administrative expenses 72,000 Operating income 64,000 Other revenues and gains Gain on sale of land 24,000 Other expenses and losses Interest expense 1,600 Income before income taxes 100,800 x Income tax expense 22,000 x Net income $ 25,000 x Earnings per share $ 0 X b. Determine the December 31, 2020, balance in retained earnings. $ OX Check