017-3A The income statement of Hanalei International Inc. contained the following condensed information $480,000 HANALEI INTERNATIONAL INC. Income Statement Year Ended December 31, 2017 Service revenue Operating expenses $245,000 Depreciation expense 35,000 Loss on sale of equipment 25,000 Profit from operations Other revenues and expenses Interest expense Profit before income taxes Income tax expense Profit 305,000 175,000 10,000 165,000 41,250 $123,750 Hanalei's balance sheet contained the following comparative data at December 31: 2017 Accounts receivable $52,000 Prepaid insurance 5,000 Accounts payable 30,000 Interest payable 2,000 Income tax payable 3,000 12,000 Unearned revenue Additional information: Accounts payable relate to operating expenses. 2016 $40,000 8,000 41,000 1,250 4,500 8,000 017-3A The income statement of Hanalei International Inc. contained the following condensed information $480,000 HANALEI INTERNATIONAL INC. Income Statement Year Ended December 31, 2017 Service revenue Operating expenses $245,000 Depreciation expense 35,000 Loss on sale of equipment 25,000 Profit from operations Other revenues and expenses Interest expense Profit before income taxes Income tax expense Profit 305,000 175,000 10,000 165,000 41,250 $123,750 Hanalei's balance sheet contained the following comparative data at December 31: 2017 Accounts receivable $52,000 Prepaid insurance 5,000 Accounts payable 30,000 Interest payable 2,000 Income tax payable 3,000 12,000 Unearned revenue Additional information: Accounts payable relate to operating expenses. 2016 $40,000 8,000 41,000 1,250 4,500 8,000