Jeale Corporation is preparing its interim financial statements for the third quarter of calendar 2014. The following information was provided for the preparation of the statements:

1. Credit sales for the quarter $1,700,000
2. Cash sales for the quarter 800,000
3. Inventories, July 1 (FIFO cost method) 250,000
4. Cash purchases of inventory during the quarter 400,000
5. Inventory purchases made on account for the quarter 650,000
6. Estimated cost of goods sold ratio 45%
7. Selling and general administrative expenses paid 111,000
8. Effective corporate tax rate 28%
9. Loss on sale of securities sold on June 30, 2014 75,000
10. Annual insurance premiums paid on August 1(the 84,000
anniversary date of the policy) (Last year's insurance expense is
included in general administrative expenses.)

Additional information:
At the end of the year, Jeale accrues its annual pension and depreciation expenses which amount to $60,000 and $42,000, respectively.

Required:
Prepare Jeale's interim income statement for the third quarter of calendar year 2014.

Jeale Corporation
Interim Income Statement
For the Calendar Quarter Ending on September 30, 2014

Sales Revenue ($1,700,000 + $800,000) $2,500,000
Less:
Cost of Goods Sold (2,500,000 × 45%) 1,125,000
Selling and general and administrative expenses 111,000
Insurance expense ($84,000/12 months × 2 months) 14,000
Depreciation expense ($42,000/4) 10,500
Estimated pension expense ($60,000/4) 15,000
Income before taxes $1,224,500
Income tax expense ($1,224,500 × 28%) 342,860
Net income $ 881,640