The adjusted trial balance for Chiara Company as of December 31 follows.

	Debit			Credit
Cash	$	204,700
Accounts receivable		52,000
Interest receivable		21,400
Notes receivable (due in 90 days)		171,000
Office supplies		17,000
Automobiles		167,000
Accumulated depreciationAutomobiles				$	85,000
Equipment		140,000
Accumulated depreciationEquipment					18,000
Land		77,000
Accounts payable					106,000
Interest payable					25,000
Salaries payable					25,000
Unearned fees					34,000
Long-term notes payable					154,000
Common stock					30,580
Retained earnings					275,220
Dividends		52,000
Fees earned					554,000
Interest earned					34,000
Depreciation expenseAutomobiles		24,500
Depreciation expenseEquipment		19,500
Salaries expense		191,000
Wages expense		45,000
Interest expense		34,000
Office supplies expense		35,600
Advertising expense		61,500
Repairs expenseAutomobiles		27,600
Totals	$	1,340,800		$	1,340,800

Required: Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31; (b) the statement of retained earnings for the year ended December 31 [Note: Retained Earnings at December 31 of the prior year was $275,220]; and (c) the balance sheet as of December 31.

Prepare the income statement for the year ended December 31.