Home Realty. Incorporated, has been operating for three years and is owned by three investors. J. Doe owns 60 percent of the total outstanding stock of 9,000 shares and is the managing executive in charge.

On December 31. 2005. the following financial items for the entire year were determined: commissions earned and collected in cash. SI 50.000. plus SI 6.000 uncollected: rental service fees earned and collected.

$20,000; salaries expense paid. $62,000; commissions expense paid. $35,000: payroll taxes paid.

$2,500: rent paid. $2,200 (not including December rent yet to be paid): utilities expense paid. SI.600:

promotion and advertising paid. $8,000: income taxes paid. $18,500: and miscellaneous expenses paid.

S500. There were no other unpaid expenses at December 3 1 . Also during the year, the company paid the owners "out-of-profit** cash dividends amounting to SI 2.000. Complete the following income statement:

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Revenues Commissions earned Rental service fees Total revenues Expenses Salaries expense Commission expense Payroll tax expense Rent expense Utilities expense Promotion and advertising expense Miscellaneous expenses Total expenses (excluding income taxes) Pretax income Income tax expense Net income $ S S $55.500