Headland Company's income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $847,000 Operating expenses (excluding depreciation) $626,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 712,000 Income before income taxes 135,000 Income tax expense 40,000 Net income $95,000 Headland's balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $35,000 $52,000 Accounts payable 43,000 30,000 Income taxes payable 4,000 9,000 (Accounts payable pertains to operating expenses.)