The pretax financial income of Oriole Company differs from its taxable income throughout each of 4 years as follows.

Year		Pretax Financial Income		Taxable Income		Tax Rate
2017		$285,000		$178,000		35	%
2018		318,000		234,000		40	%
2019		381,000		282,000		40	%
2020		402,000		593,000		40	%

Prepare the income statement for 2018, beginning with income before income taxes. Pretax financial income for each year includes a nondeductible expense of $28,600 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2017.

Prepare the income statement for 2018, beginning with income before income taxes.