Melanie Mielke Construction Corporation is considering the appropriate accounting for two unrelated events during the year.

The first event related to the effects of a labor strike that resulted in a work stoppage on a major construction project. \($2\),000,000 of building material that was left exposed to weather conditions during the strike was lost. The construction trade relies heavily on unionized labor and strikes are a common negotiating tool.

The second event was a \($3\),000,000 gain related to sale of valuable antiquities that were excavated at a construction site. This event was completely unexpected.

Melanie Mielke's annual sales were \($9\),000,000, at a gross margin of 15%. Selling expenses totaled \($300\),000 and administrative expenses totaled \($800\),000. Mielke is subject to a 30% income tax rate.

Prepare the 20XX income statement for Melanie Mielke Construction Corporation.