Laptop Computers, Inc., sells laptop computers. On January 1 last year, it had a beginning merchandise inventory of $250,000 including transportation-in costs. It purchased $1,300,000 of merchandise, had $130,000 of transportation-in costs, and had marketing and administrative costs of $800,000 during the year. The ending inventory of merchandise on December 31 was $150,000, including transportation-in costs. Revenue was $2,500,000 for the year.

Prepare an income statement with a supporting cost of goods sold statement.