The following information applies to the questions displayed below.]

The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.

Advertising expense	$	28,750		Direct labor	$	675,480
Depreciation expenseOffice equipment		7,250		Income taxes expense		233,725
Depreciation expenseSelling equipment		8,600		Indirect labor		56,875
Depreciation expenseFactory equipment		33,550		Miscellaneous production costs		8,425
Factory supervision		102,600		Office salaries expense		63,000
Factory supplies used		7,350		Raw materials purchases		925,000
Factory utilities		33,000		Rent expenseOffice space		22,000
Inventories				Rent expenseSelling space		26,100
Raw materials, December 31, 2018		166,850		Rent expenseFactory building		76,800
Raw materials, December 31, 2019		182,000		Maintenance expenseFactory equipment		35,400
Work in process, December 31, 2018		15,700		Sales		4,462,500
Work in process, December 31, 2019		19,380		Sales salaries expense		392,560
Finished goods, December 31, 2018		167,350
Finished goods, December 31, 2019		136,490

Prepare the companys 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.

LEONE COMPANY
Income Statement
For Year Ended December 31, 2019
Sales		$4,462,500
Cost of goods sold
Cost of goods manufactured	$1,935,650
Finished goods inventory, December 31, 2018
Goods available for sale	1,935,650
Cost of goods sold		1,935,650
		2,526,850
Operating expenses
Selling expenses
Total selling expenses		0
General and administrative expenses
Total general and administrative expenses		0
Total operating expenses		0
Income before taxes		2,526,850
Net income		$2,526,850