Gross Income 513, 369,000 Expenses? Compensation 17. 500, 000 1 4 Stock option compensation ( 200 . 00.0 75 Advertising ( 1 , 350, 000 ) Repairs and Maintenance (75 , 000 ) Rent ( 22, 000 ) Bad Debt EXPENSE (41, 000 1 6) Depreciation ( 1. 400,000 )* Warranty Expenses (70.000 1 0 Charitable donations* 1500 ,00.0 7} Meals ( 18, 000 ) Goodwill impairment (30. 000 1 10 Organizational Expenditures ( 4 4.000 1 11/ Other EXPENSES ( 140.000 1 } Total Expenses ($ 1 1 . 390.000 ) Income before taxes $ 1. 979,000 Provision for income* 1720.000 1 1} " 42014.`