Income statement Y2 Sales revenue 9000.00 COGS [Depreciation not included here.] 2756.00 = Gross profit 6244.00 Bad debt expense 926.00 Depreciation expense 1100.00 Advertising expense 156.00 salary expense 1500.00 = Operating income 2562.00 Gain (loss) on sale of PP&E -145.00 = EBIT 2417.00 Interest expense 93.00 = Earnings before taxes 2324.00 Current tax expense 765.00 Deferred tax expense: Change in (DTL - DTA) 364.00 = Total tax expense 1129.00