Berry Company Is Going Through a Chapter 11 Bankruptcy Reorganization

Berry Company is going through a Chapter 11 bankruptcy reorganization. Prepare the income statement for the calendar year 2011 using the following information. The effective tax rate is 20%. $$\begin{array} { | l | r | } \hline \text { Advertising expense } & \$ 23,000 \\\hline \text { Cost of goods sold } & 234,000 \\\hline \text { Depreciation expense } & 20,000 \\\hline \text { Interest expense } & 5,000 \\\hline \text { Interest revenue } & 23,000 \\\hline \text { Loss on closing the branch } & 100,000 \\\hline \text { Professional fees } & 60,000 \\\hline \text { Rent expense } & 18,000 \\\hline \text { Revenues } & 389,000 \\\hline \text { Salary expense } & 66,000 \\\hline\end{array}$$