Thomas Taylor, Vaughn $\backslash$& Chris's controller, has received all the budgets prepared by the various operating units and is ready to compile the pro$-$forma financial statements for the first quarter. The company's balance sheet as of December $31$ is as follows:

Additional Information:

Vaughn $\backslash$& Chris plans to purchase and pay cash for a piece of land in February at a cost of $\backslash$$$90,000.$

Vaughn $\backslash$& Chris plans to purchase equipment in March at a cost of $\backslash$$$30,000.$

Depreciation for manufacturing overhead $\backslash (\backslash$$ $42,000\backslash )$ per quarter and for selling and administrative $\backslash$$$30,000$ per month.

The company expects a $30\backslash \%$ income tax rate, and all quarterly taxes are paid in the first month of the following quarter. Prepare Vaughn $\backslash$& Chris's pro$-$forma income statement for the first quarter. $($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

Vaughn$\backslash$& Hill Income Statement

First Quarter

$\backslash$$

Income Before Taxes