Addison Corporation is currently going through a Chapter 11 bankruptcy reorganization. The company has the following account balances for the current year. Credit Debit $ 42,000 229,000 40,000 6,000 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 $ 40,000 127,000 89,000 34,000 593,000 88,000 Prepare an income statement for this organization. The effective tax rate is 30 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 Revenues $ 593,000 Costs and expenses. Advertising expense Depreciation expense Interest expense Rent expense Salaries expense Cost of goods sold $ 42,000 40,000 6,000 34,000 88,000 229,000 439,000 Earnings before reorganization items and tax effects $ 154,000 Reorganization items: Interest revenue 40,000 Professional fees (89,000) Loss on closing of branch (127,000) (176,000) Loss before income tax benefit $ (22,000) Income tax benefit x Net loss $ (22,000) *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted