Instant Brake Inc.'s comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows: Instant Brake Inc. Income Statement December 31, 2020 Sales $877,000 Cost of goods sold 572,000 Gross profit $305,000 Operating expenses $132,680 Depreciation expense 41,240 173,920 Operating Profit 131,080 Loss on sale of equipment 11,580 Investment income 18,520 Profit before taxes 138,020 16,000 Income taxes Profit $122,020