Old Henry MacDonald purchased a farm for $75 000. He paid $25 000 cash and financed the balance with a ten-year mortgage carrying an annual interest of 9 percent due once per year. He then purchased cattle with a cash payment of $3000, and issued a promissory note of $5000 carrying an annual interest rate of 8 percent for the balance. Revenues and expenses during the first year of operation of the farm were as follows: Sale of calves $8500 1200 1500 Income Sale of hay Salaries Rental of machinery Veterinarian fees 2000 175 Fertiliser 200 50 000 (0.09) + 5000 (0.08) 450 Property taxes Repairs Expenses 375 Interest of debt 4900 Miscellaneous expenses 125 Depreciation 1500 Prepare an income statement for the year, providing for income taxes at a rate of 40 percent.