Mountain Company had the following income statement for the year ended December 31, 2009.

Sales		4,500,000
Cost of Sales:
Inventory January 1	750,000
Purchases	2, 850,000
Goods available for sale	3,600,000
Less: Inventory December 31	600,000	3,000,000
Gross income		1,500,000
Expenses:
Salaries	600,000
Rent	250,000
Insurance	20,000
Other Expenses	100,000
Depreciation	50,000	1,020,000
Net income		480,000