Prepare a GAAP$-$based income statement and balance sheet for Zachary Company for Year $1$ under the following scenario:

b$.$ Zachary is in the car rental business. The $$49,600$ was paid to purchase automobiles. The automobiles were purchased on January $1,$ Year $1,$ and have four$-$year useful lives, with no expected salvage value. Zachary uses straight$-$line depreciation. The revenue was generated by leasing the automobiles.