Oak Mart, a producer of solid oak tables, reports the following data from its second year of business.

Sales price per unit	$	300	per unit
Units produced this year		105,000	units
Units sold this year		109,000	units
Units in beginning-year inventory		4,000	units
Beginning inventory costs
Variable (4,000 units $135)	$	540,000
Fixed (4,000 units $75)		300,000
Total	$	840,000
Manufacturing costs this year
Direct materials	$	46	per unit
Direct labor	$	62	per unit
Overhead costs this year
Variable overhead	$	3,200,000
Fixed overhead	$	7,200,000
Selling and administrative costs this year
Variable	$	1,350,000
Fixed		4,200,000

1. Prepare the current-year income statement for the company using variable costing.

2. Prepare the current year income statement for the company using absorption costing.