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, 2019 No. 1 No.2 No. 3 Combined Sales (by grade) No. 1: 408,000 Ibs. @ $1.20/lb $489,600 No. 2: 408,000 lbs. @ $0.80/lb $326,400 No. 3: 1,020,000 Ibs. @ $0.20/lb $ 204,000 Total sales $1,020,000 Costs Tree pruning and care @ $0.30/lb 122,400 122,400 306,000 550, 800 Picking, sorting, and grading @ $0.10/lb 40,800 40,800 102,000 183, 600 Delivery costs 16,000 16,000 38,500 7 0,500 Total costs 179,200 179,200 446,500 804,900 Net income (1033) $310,400 $147,200 $ (242,500) $ 215,100 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 $32,000 of the $70,500 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,500 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.) 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, 2019 No.1 No.2 No.3 Combined Sales $ 489,600 $ 326,400 $ 204,000 $1,020,000 Costs Tree pruning and care 264,384 176,256 110,160 550,800 Picking, sorting and grading 88,128 58,752 36,720 183,600 Delivery 19,584 Total costs 372,096 235,008 146,880 734,400 Net income $ 117,504 $ 91,392 $ 57,120 $ 285,600