On January 1, 2014 Zhao Company purchased equipment for $26,800 that had a $4,000 salvage value and an expected useful life of four years. The equipment was used to produce the following revenues (assume all revenue transactions are for cash). This is the only activity for Zhao Company. At the beginning of the fifth year, the equipment was sold for $4,600 cash. Zhao uses straight-line depreciation.

2014 2015 2016 2017 2018

Revenue $7,400 $7,900 $8,100 $6,900 $0

Required

Prepare an income statement for each of the five years. (Loss amounts should be indicated with a minus sign.)