Jose Aguilar, owner of the Aguilar Inn, desires to have the inn’s income statement prepared in accordance with the USALI. Listed below is financial information for the Aguilar Inn for the year ended December 31, 20X2.

Account Title Account Balance Marketing Expense $ 98,500 Depreciation Expense 90,000 Room Revenue 1,600,000 Rent Expense 120,000 Insurance Expense 15,000 Income Taxes (tax rate—30%) 2 Employee Benefits—Rooms Department 40,000 Food and Beverage Revenue 600,000 Other Expense—Telephone Department 7,000 Administrative and General Expenses 250,000 Property Taxes 70,000 Cost of Food and Beverage Sales 180,000 Payroll—Telephone Department 14,000 Revenue—Rental and Other Income 10,000 Revenue—Telephone Department 40,000 Data Processing Expenses 34,000 Human Resources Expenses 20,000 Salaries and Wages—Rooms Department 200,000 Interest Expense 110,000 Other Expenses—Food and Beverage Department 90,000 Other Expenses—Rooms Department 160,000 Property Operation and Maintenance 80,000 Cost of Sales—Telephone Department 30,000 Payroll—Food and Beverage Department 200,000 Energy Costs 150,000 Required:
Prepare the income statement following the USALI. (If you do not have a copy of the USALI, use Exhibit 4-2 as a guide.)