McMahon Music Co$.$

Comparative Income Statements

Years Ended December $31,2018$ and $2017$

$$

$2018$

Total revenue $$844,000$

Expenses:

$$

$$

Cost of goods sold $$404,000$

Selling and general expenses $234,000$

Interest expense $9,300$

Income tax expense $84,000$

Total expenses $731,300$

Net income $$112,700$

$2017$

Total revenue $$934,000$

Expenses:

$$

$$

Cost of goods sold $$400,000$

Selling and general expenses $268,000$

Interest expense $12,000$

Income tax expense $86,000$

Total expenses $766,000$

Net income $$168,000$