Terwilliger Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2014. The 2014 operating results for the company were as follows.

Operating revenues ........$12,850,000

Operating expenses ........ 8,700,000

Operating income ........... $ 4,150,000

Analysis discloses that these data include the operating results of the hotel chain, which were operating revenues $1,500,000 and operating expenses $2,400,000. The hotels were sold at a gain of $200,000 before taxes. This gain is not included in the operating results.

During the year, Terwilliger suffered an extraordinary loss of $600,000 before taxes, which is not included in the operating results. In 2014, the company had other revenues and gains of $100,000, which are not included in the operating results. The corporation is in the 30% income tax bracket.

Instructions

Prepare a condensed income statement.