During year $1,$ Perez Manufacturing Company incurred $$117,500,000$ of research and development $($R&D$)$ costs to create a long$-$life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in year $1.$ Manufacturing costs $($direct materials, direct labor, and overhead$)$ are expected to be $$64$ per unit. Packaging, shipping, and sales commissions are expected to be $$11$ per unit. Perez expects to sell $2,500,000$ batteries before new research renders the battery design technologically obsolete. During year $1,$ Perez made $434,000$ batteries and sold $395,000$ of them.

Fill in the GAAP$-$based income statement for year $1.$ Use the sales price $=93\mathrm{.}75$

$\backslash$table$[[$PEREZ MANUFACTURING COMPANY$],[$Income Statement$],[$Sales revenue,$],[$Cost of goods sold,$],[$Gross margin,$],[$Depreciation expense,$],[$Inventory holding expense,$],[$Research & development expense,$],[$Net income $($loss$),$$$0$