Chen Ming and Li Qing formed a partnership named Chen Li Partnership, with a profit$-$sharing ratio of $3$:$2.$ Below is the adjusted trial balance of Chen Li Partnership as of December $31,2022$:

Land and buildings $$3,600,000$

Equipment $$500,000$

Accumulated depreciation $-$ Equipment $$435,200$

Inventory $$767,822$

Bank deposits $$464,088$

Purchases $$870,000$

Sales revenue $$2,580,000$

Salary expense $$690,000$

Interest payable $$120,000$

Contributions $$118,000$

Insurance expense $$60,282$

Sales returns $$52,800$

General office expenses $$147,600$

Accounts receivable $$580,476$

Accounts payable $$145,255$

$4\%$ bank loan $($due in $2028)$ $$3,000,000$

Interest expense $$120,000$

Bad debt expense $$6,847$

Capital accounts: Chen Ming $$500,000$

Li Qing $$400,000$

Current accounts: Chen Ming $$617,140$

Li Qing $$200,000$

Withdrawals: Chen Ming $$12,000$

Li Qing $$7,680$

Additional information:

Depreciation for company equipment is calculated using the double declining balance method. All equipment was purchased on January $1,2018,$ with a useful life of $5$ years and a residual value of $$2,000.$

The building was purchased on January $1$ of the current year with the following details:

Building purchase price: $$1,000,000$

Stamp duty: $$200$

Legal fees: $$8,000$

General administrative expenses: $$5,000$

Real estate commission: $$10,000$

Cleaning expenses: $$35,000$

The company estimates annual depreciation for the building at $5\%.$

All sales are made on credit. Additionally, to boost sales, the company allows a $7-$day return policy on all sales. Sales in the last $7$ days of the year account for $1\mathrm{.}5\%$ of annual sales revenue, with a cost of goods sold of $$116,100.$

Inventory in the warehouse as of December $31,2022,$ is valued at $$482,333$ after physical inventory.

Estimated income tax expense for $2022$ is $$102,057.$

Prepaid contributions and prepaid insurance expenses as of December $31,2022,$ are $$2,200$ and $$3,200$ respectively. Salaries payable amount to $$22,000.$

On December $31,2022,$ one customer paid a previously overdue account of $$1,825,$ which had been previously written off as bad debt during the year.

During $2022,$ the company issued a check for $$5,600$ to pay insurance for October, but erroneously debited general office expenses and credited cash $$560$ on the books.

The partnership agreement stipulates interest on capital contributions at an annual rate of $1\%.$ There were no changes in capital contributions during the year.

The partnership agreement stipulates that if the annual pre$-$tax profit reaches $$200,000$ or more, the company will provide Li Qing with $10\%$ of the net profit as salary.

Chen Ming and Li Qing's withdrawal interest should be $$990$ and $$670$ respectively.

Required:

Prepare the income statement and profit allocation account for the Chen Li Partnership for the year ended December $31,2022,$ adjusting for the above additional information.