Branson Electronics Company is a small, publicly traded company preparing its first quarter interim report to be mailed to

shareholders. The following information for the quarter has been compiled:

Fixed operating expenses include payments of $$54,800$ to an advertising firm to promote Branson through various media throughout

the year. The income tax rate for Branson's level of operations in the first quarter is $20\%,$ but management estimates the effective rate

for the entire year will be $25\%.$

Required:

Prepare the income statement to be included in Branson's first quarter interim report.