The company started business in 2009. In 2011, the company decided to change its method of computing oil and gas exploration expense. The company has only two expenses: oil and gas exploration expense and income tax expense. The following sales and oil and gas exploration expense information are for 2009€“2011:

Prepare the 2011 comparative income statement. The income tax rate for all items is30%.

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2011 2010 2009 Sales Oll and gas exploration expense -old method Oil and gas exploration expense-new method $5.000 1,000 700 $3,000 600 1,200 $2,000 400 1,500