Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: \begin{tabular}{lrc} & Current Year & Previous Year \\ \hline Sales & $497,000 & $442,000 \\ Cost of merchandise sold & 273,350 & 221,000 \\ Selling expenses & 89,460 & 88,400 \\ Administrative expenses & 94,430 & 79,560 \\ Income tax expense & 14,910 & 22,100 \end{tabular} Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31