Piura Merchandising Corporation Income Statement For the Year Ended December 31, 20X1 Sales Cost of goods sold $ 1,525,000 Beginning inventory $360,000 Purchases 730,000 Ending inventory (245,000) (845,000) Depreciation expense (59,000) Amortization of patent (20,000) Wages expense (62,000) Insurance expense Income before taxes Income taxes (all current) Net income (105,000) $ 398,000 (36,000) $ 503,000