From the following inventory records of Bornhauser Corporation for \(19 \mathrm{X} 7\), prepare the company's income statement through gross margin. Apply the lower-of-cost-or-market rule.

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Beginning inventory (average cost).. (replacement cost). Purchases during the year. Ending inventory (average cost). 300 @ $41.63 = $ 12,489 300 @ 41.91 = 12,573 2,600 @ 44.50 115,700 400 @ 45.07 18,028 (replacement cost)... 400 @ 42.10 = 16,840. Sales during the year. 2,500 @ 80.00 = 200,000