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

Advertising expense	$	33,300		Direct labor	$	678,000
Depreciation expense—Office equipment		10,200		Income taxes expense		269,000
Depreciation expense—Selling equipment		9,700		Indirect labor		56,100
Depreciation expense—Factory equipment		33,400		Miscellaneous production costs		9,900
Factory supervision		116,400		Office salaries expense		67,000
Factory supplies used		9,600		Raw materials purchases		936,000
Factory utilities		31,000		Rent expense—Office space		27,000
Inventories				Rent expense—Selling space		27,100
Raw materials, December 31, 2018		150,500		Rent expense—Factory building		77,100
Raw materials, December 31, 2019		182,000		Maintenance expense—Factory equipment		37,300
Work in process, December 31, 2018		18,800		Sales		4,446,300
Work in process, December 31, 2019		24,900		Sales salaries expense		394,900
Finished goods, December 31, 2018		163,800
Finished goods, December 31, 2019		135,900

Prepare the company’s 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.
  
LEONE COMPANYIncome StatementFor Year Ended December 31, 2019Cost of goods soldGoods available for saleCost of goods soldOperating expensesSelling expensesTotal selling expensesGeneral and administrative expensesTotal general and administrative expensesTotal operating expensesIncome before taxesNet income

Answer 1