Plucket Corp. is the process of preparing its financial statements for the year ended December 31, year 4. Before closing its books, it prepared the following:

Condensed trial balance

December 31, year 4

DEBIT

CREDIT

Total assets	7,082,500
Total liabilities		1,700,000
Common stock		1,250,000
Additional paid-in capital		2,097,500
Donated capital		90,000
Retaining earnings, 1/1/year 4		1,650,000
Net sales		6,250,000
Cost of sales	3,750,000
Selling and administrative expenses	1,212,500
Interest expense	122,500
Gain on sale of long-term investments		130,000
Income tax expense	300,000
Loss of disposition of plant assets	225,000
Loss due to earthquake damage	475,000
	13,167,500	13,167,500

Other financial data for the year ended December 31, year 4:

• Sales returns and allowances equaled $215,000, and sales discounts taken were $95,000.
• Estimated federal income tax payments were $200,000, and accrued federal income taxes equaled $100,000. The total charged to income tax expense does not properly reflect current or deferred income tax expense or interperiod income tax allocation for income statement purposes. The enacted tax rate on all types of taxable income for the current and future years is 30%. The alternative minimum tax is less than the regular income tax.
• Interest expense includes 6% interest on 20-year bonds issued at their face amount of $1,500,000
• A $90,000 excess of carrying amount over tax basis in depreciable assets arose from receipt of a contribution of equipment by a local government on December 31, year 4. It is expected to be depreciated over 5 years beginning in year 5. There were no temporary differences prior to year 5.
• Officerss life insurance expense(no tax deductible) is $70,000.
• The earthquake damage is considered unusual and infrequent, but the disposition of plan assets is considered infrequent but not unusual, moreover, the disposition of plan assets was not a disposal of a component of an entity.
• The shares of common stock ($5 par) traded on a national exchange:

Outstanding at 1/1/year 4 200,000

Issued on 3/30/year 4 as a 10% stock dividend 20,000

issued shares for $25 per share on 6/30//year 4 30,000

outstanding at 12/31/year 4 250,000

• Pucket declared a $1.25 common stock dividend on December 28, year 4.

Using the information provided, enter in the shaded cells the correct amounts for Pucket corporations income statement.

Pucket Corporation

Income Statement

For the year ended december 31, year, 4

Net sales

Cost of sales

Gross profit

Selling and administrative expenses

Income from operations

Other revenues and gains:

Gain on sale of long-term investments

Other expenses and losses:

Interest expense

Loss on disposition on plant assets

Income from continuing operations before income tax

Income tax expense:

Current tax expense

Deferred tax expense

Income before extraordinary item

Extraordinary item-loss from earthquake (net of applicable taxes)

NET INCOME