Answer:
Net income is $2,474,000
Retained earning for the year 2017 is $2,142,000
Retained earnings balance at December 31, 2017 is $3,123,000 
Explanation:
A multi-step income statement is an income statement that shows gross profit and the detailed of each category of expenses and incomes to arrive at the net income of a company for a particular period.
This can be prepared as follows:
Kingbird Company
Mutiple step income statement 
for the year ended December 31, 2017
<u>Details                                                                  $         </u>
Sales Revenue                                           26,100,000
Cost of goods sold                                  <u>  (16,100,000) </u>
Gross profit                                                10,000,000
Operating expenses:
Selling and administrative expenses      <u>  (4,710,000) </u>
Operating income                                       5,290,000   
Other income (loss):
Gain on the sale of investments                     111,000
Write-off of goodwill                                      (821,000)
Loss due to flood damage                            (391,000) 
Interest income:
Interest revenue                                          <u>     71,000  </u>
Income before tax                                       4,260,000
Income taxes for 2017                              <u>  (1,254,000) </u>
Income after tax                                          3,006,000
Extraordinary items:
Loss on wholesale div. disp. (net of tax)      (441,000)
Loss on wholesale div. op. (net of tax)       <u>   (91,000) </u>
Net income                                                   2,474,000
Preferred stock dividend                                (81,000) 
Common stock dividend                           <u>     (251,000) </u>
Retained earning for the year 2017             2,142,000
Retained earnings balance, Jan. 1, 2017   <u>     981,000 </u>
Retained earnings bal., Dec. 31, 2017       <u> 3,123,000 </u>