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Prepare an Income Statement

Income Statement (with cost of goods sold adjustment). Required: Prepare an income statement for year ended December 31.

Rambler Company had the following activity for the year ended December 31:

Sales revenue $2,050,000
Selling expenses $ 575,000
General and administrative expenses $ 330,000
Cost of goods sold (before adjustment) $ 700,000
Under-applied overhead $ 23,000

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