Required information [The following information applies to the questions displayed below.] Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2024 Revenues and gains: Sales ($ in thousands) Gain on sale of building $ 800 11 $811 Expenses and loss: Cost of goods sold $ 300 Salaries 120 Insurance 40 Depreciation 123 Interest expense 50 Loss on sale of equipment 12 645 Income before tax 166 Income tax expense 78 Net income $ 88 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) Year Cash 2024 $ 134 2023 Change $ 100 $ 34 Accounts receivable 324 216 108 Inventory 321 425 Prepaid insurance 66 88 Accounts payable 210 117 Salaries payable 102 93 (104) (22) 93 9 Deferred tax liability 60 52 8 Bond discount 190 200 (10)