BECKUM, Inc. is an established bike dealer and in the process of preparing the financial statements for the year 2020. It had 40000 shares of $ 5 par value common stock and 3000 shares of 9 %, $ 50 par value preferred stock outstanding throughout the year. The company had 2 segments, one is "bike sales" and the other one is "bike repairs". During 2020 BECKUM, Inc. decided to focus in future only on the more profitable "bike sales" business and therefore sold the other segment.
a) Prepare a condensed income statement for 2020 – including earnings per share (EPS). b) Prepare a statement of retained earnings for the year ended 31. December 2020.