Required information [The following information applies to the questions displayed below.] Georgia Orchards produced a good crop of peaches this year. After preparing the following income statement, the company is concerned about the net loss on its No. 3 peaches. GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2017 No. 1 No. 2 No. 3 Combined Sales (by grade) No. 1: 400,000 Ibs. @ $1.20/lb $ 480,000 No. 2: 400,000 Ibs. @ $0.80/lb $320,000 No. 3: 800,000 Ibs. @ $0.25/lb $ 200,000 Total sales $1,000,000 Costs Tree pruning and care @ $0.25/Ib 100,000 100,000 200,000 400,000 Picking, sorting, and grading @ $0.20/Ib 80,000 80,000 160,000 320,000 Delivery costs 15,600 15,600 38,100 69,300 Total costs 195,600 195,600 398,100 789,300 Net income (loss) $ 284,400 $124,400 $ (198,100) $ 210,700 In preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. The company's delivery cost records show that $31,200 of the $69,300 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,100 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery. 2. Using your answers to part 1, prepare an income statement using the joint costs allocated on a sales value basis. (Do not round intermediate calculations.) GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2018 No. 1 No.2 No. 3 Combined Costs Total costs 0 0 0 0 0 0 0 0 $ $ $ $