Questions: The Ivanhoe Corporation's December 31, 2026 year-end trial balance contained the following income statement items: Sales revenue 6,705,000 Interest revenue 73,400 Gain on sale of investments 53,500 Cost of goods sold 4,208,000 Selling expense 348,800 Administrative and general expense 950,700 Interest expense 28,100 Research and development expense 593,000 Income tax expense 149,000 Calculate the company's operating income for the year using a single-step income statement format.

To calculate the company's operating income for the year using a single-step income statement format, we need to follow these steps:

1. Identify all revenues and gains:

   • Sales revenue: $6,705,000
   • Interest revenue: $73,400
   • Gain on sale of investments: $53,500

2. Identify all expenses:

   • Cost of goods sold: $4,208,000
   • Selling expense: $348,800
   • Administrative and general expense: $950,700
   • Interest expense: $28,100
   • Research and development expense: $593,000
   • Income tax expense: $149,000

3. Calculate total revenues and gains: \[ \text{Total Revenues and Gains} = \text{Sales revenue} + \text{Interest revenue} + \text{Gain on sale of investments} \] \[ \text{Total Revenues and Gains} = \$6,705,000 + \$73,400 + \$53,500 = \$6,831,900 \]

4. Calculate total expenses: \[ \text{Total Expenses} = \text{Cost of goods sold} + \text{Selling expense} + \text{Administrative and general expense} + \text{Interest expense} + \text{Research and development expense} + \text{Income tax expense} \] \[ \text{Total Expenses} = \$4,208,000 + \$348,800 + \$950,700 + \$28,100 + \$593,000 + \$149,000 = \$6,277,600 \]

5. Calculate operating income: \[ \text{Operating Income} = \text{Total Revenues and Gains} - \text{Total Expenses} \] \[ \text{Operating Income} = \$6,831,900 - \$6,277,600 = \$554,300 \]

Summary: The operating income for Ivanhoe Corporation for the year ending December 31, 2026, is $554,300.