Addison Corporation is currently going through a Chapter 11 bankruptcy reorganization. The company has the following account balances for the current year. Credit Debit $ 40,000 227,000 38,000 4,000 Advertising expense Cost of goods sold Depreciation expense Interest expense Interest revenue Loss on closing of branch as part of reorganization Professional fees Rent expense Revenues Salaries expense $ 38,000 125,000 87,000 32,000 579,000 86,000 Prepare an income statement for this organization. The effective tax rate is 25 percent (realization of any tax benefits is anticipated). (Negative amounts under "Reorganization items" should be indicated by a minus sign. All other amounts should be entered as positive.) Answer is not complete. ADDISON CORPORATION Income Statement $ 579,000 Revenues Costs and expenses Cost of goods sold Advertising expense Salaries expense Interest expense Depreciation expense $ 227,000 40,000 86,000 4,000 38,000 Rent expense 32,000 427,000 $ 152,000 Earnings before reorganization items and tax effects Reorganization items: Professional fees Loss on closing of branch (87,000) (125,000) Interest revenue 38,000 (174,000) Prepare an income statement for this organization. The effective tax rate is 25 percent (realization of any tax benefits is anticipated). (Negative amounts under "Reorganization items" should be indicated by a minus sign. All other amounts should be entered as positive.) ADDISON CORPORATION Income Statement $ 579,000 Revenues Costs and expenses: Cost of goods sold Advertising expense Salaries expense Interest expense Depreciation expense $ 227,000 40,000 86,000 4,000 38,000 Rent expense 32,000 427,000 S 152,000 Earnings before reorganization items and tax effects Reorganization items: Professional fees Loss on closing of branch (87,000) (125,000) Interest revenue 38,000 (174,000) S (22,000) Loss before income tax benefit Net loss S (22,000)