Adam's Company prepared the following Income Statement for review by its auditor

Income Statement

For the year Ended 12/31/19

Sales $7,500,000

Cost of goods sold 3,800,000

Gross profit 3,700,000

Operating expenses 1,900,000

Income before income taxes 1,800,000

Income tax expense (30%) 540,000

Net income $1,260,000

Adam's company has had 200,000 shares of common stock outstanding all year.

Included in cost of goods sold is an unusually large $250,000 writedown of obsolete inventory. Operating expenses include (a) additional bad debt expense of $50,000 due to a decision to increase the Allowance for Doubtful Accounts because of a change in economic conditions, and (b) a loss of $100,000 due to a fire in the warehouse.

On October 1, Adam decide to spin-off its manufacturing division, which the auditor determines is a separate business segment. After this decision, Adam omitted the division from the income statement. The division's operating loss up to 10/1/19 was $150,000. After 10/1/19, it lost an additional $40,000. Adam expects to sell the net assets in January 2020.

Required: Prepare the corrected income statement for Adam that would be prepared by the auditor in accordance with GAAP.