Huang Company operates with a single product. The following simple income statement relates to last year when sales units totaled 26,000:

Variable Costing GAAP Absorption Costing

Total $ Per unit $ Total $

Sales 520,000 20.00 Sales x

Variable COGS 182,000 7.00 COGS x

Variable S&A expense 91,000 3.50 Gross margin x

Contribution margin 247,000 9.50 S&A expenses x

Fixed Man Ovrhd expenses 140,000 Net operating income x

Fixed S&A expenses 42,000

Net operating income 65,000

Huang Company unit production for the year totaled 28,000.

Prepare a GAAP income statement for Huang Company. Reconcile any difference between the Variable costing and GAAP net operating incomes.