Here is the assignement, I am on (1) Prepare a single-step income statement for the year

I3-2:

The Grey Sky Company, which has 25,000 shares of common stock outstanding, reports the following ledger balances as of December 31 after adjustments and before closing entries.

Accounts Receivable 85,000
Inventory 150,000
Land 900,000
Accounts Payable 90,000
Common Stock 500,000
Retained Earnings (beginning of year) 238,000
Sales 1,400,000
Rent revenue 28,000
Cost of goods sold 600,000
Selling expenses 200,000
Administrative expenses 170,000
Loss on discontinued operation 50,000
Extraordinary gain 67,000
Extraordinary loss 40,000
Unrealized holding gain on available-for-sale securities 12,000
Cash dividends paid 100,000
Income tax expense applicable to:
Income from continuing operations 131,000
Loss on discontinued operations 18,000
Extraordinary gain 23,000
Extraordinary loss 8,000

Instructions:

(1) Prepare a single-step income statement for the year.
(2) Prepare a retained earnings statement for the year.
(3) Use the second income statement format to report comprehensive income.


Here is what I have done:

GREY SKY COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2010
Revenues
Sales $1,400,000
Rental revenue 28,000
Total revenues $1,428,000

Expenses
Cost of goods sold 600,000
Selling expenses 200,000
Administrative expenses 170,000
Total expense 970,000

Income from continuing operations before tax 458,000
Income tax 131,000
Income from continuing operations $327,000
Discontinued operations
Loss on discountinued operations 50,000.00
Less: income tax reduction $18,000.00 $32,000.00
Income before extaordinary items $359,000.00
Extraordinary items:
Extraordinary gain $67,000
Less: income tax $23,000 $44,000
$315,000.00
Extraordinary loss $40,000
Less: income tax reduction $8,000 $32,000
Net income $283,000.00
Can some one please help me with this, I have tried to see what the tax rate is to see if my amounts are correct, we were not given the tax rate either, so I do not know how to check my numbers. Thank you

There are two points relevant:
1. The trail balance does not agree. Debits are more than credits
2. You have added $32,000 loss from discontinued operations instead of deducting it.

In a single step income statement your fisrt line will be a total of your revenues, the seceond line will be a total of your expenses and your third line will be your Gross Profit or Net Income.