Complete the following Income Statement. Double$-$click on the shaded cells in Column A and select the appropriate account from the list provided. Enter the appropriate amount in the shaded cells in Column B$.$ Numbers to be subtracted must be entered as negative numbers.

Selected information from the December $31,$ Year $3,$ trial balance of Pitt Corp. follows:

Debit Credit

Common stock $$1,250,000$

Additional paid$-$in capital $2,187,500$

Retained earnings, January $1,$ Year $41,650,000$

Net sales $6,250,000$

Cost of sales $$3,750,000$

Selling and administrative expenses $1,212,500$

Interest expense $122,500$

Gain on extinguishment of debt $130,000$

Loss on sale of equipment $225,000$

Loss due to earthquake damage $700,000$

Pitt uses U$.$S$.$ GAAP.

$*$In September, Year $3,$ one of Pitt's operating plants was destroyed by an earthquake. Earthquakes are rare in the area in which the plant was located.$$ The portion of the resultant loss not covered by insurance was $$700,000.$

$*$On October $1,$ Year $3,$ Pitt Corp. committed itself to a formal plan to sell its Kam Division's assets early in Year $4.$ On that date, Pitt estimated that the fair value of the component's assets was $$25,000$ less than the carrying value.$$ Pitt also estimated that Kam would incur operating losses of $$100,000$ for the year$-$ended December $31,$ Year $3$ and $$50,000$ for the period January $1,$ Year $4,$ through February $28,$ Year $4.$ All estimates proved to be materially correct.

$*$Pitt Corp. bought a truck in January of Year $1$ for $$180,000.$ The truck was expected to have a ten$-$year useful life and no salvage value.$$ During Year $3,$ Pitt Corp. realized that the truck would only have a total useful life of $5$ years.$$ The truck is being depreciated using the straight$-$line method.$$ The depreciation expense $($on the truck$)$ to be included in selling and administrative expenses has not yet been recorded.

$*$The company has an ongoing policy of retiring long$-$term debt.

$*$Pitt Corp. had unrealized gains of $$10,000$ on available$-$for$-$sale securities during the current year.

$*$Pitt Corp's pension plan recorded prior service cost of $$6,000$ during Year $3$ due to plan amendments.

$*$Pitt$\text{'}$s effective income tax rate is $30\%.$

A B

$1$ Net sales $6,250,000\mathrm{.}00$

$2$ Cost of sales $-3,750,000\mathrm{.}00$

$3$

$4$

$5$ Selling and administrative expenses

$6$ Operating Income

$7$

$8$ Other income and expenses:

$9$ Interest expense $-122,500\mathrm{.}00$

$10$

$11$ Other gains and losses:

$12$ Loss on sale of equipment $-225,000\mathrm{.}00$

$13$

$14$

$15$ Income before income tax

$16$ Income tax expense

$17$ Income from continuing operations

$18$

$19$

$20$

$21$

$22$ Net Income