ABC Construction Company specializes in residential projects. Financial data for the fiscal year 2023 is provided below:

Ledgers:

• Contract Revenues: $20,000,000
• Construction Costs: $15,000,000
• General and Administrative Expenses: $2,000,000
• Depreciation Expense: $500,000

Requirements:

• Prepare ABC Construction Company's income statement for the year ended December 31, 2023.
• Calculate the Gross Profit and Operating Income.
• Determine the Net Income after taxes using a tax rate of 30%.
• Discuss the impact of depreciation on ABC Construction Company's financial statements.