The Adams Corporation reported the following Income Statement and comparative Balance Sheet for 2011 and 2010, along with transaction data for 2011: ADAMS CORPORATION, Income Statement, For the Year Ended December 31, 2011 Sales revenue Cost of goods sold Gross profit $ 662,000 560,000 102,00 Operating expense: Salary expenses $ 46,000 Depreciation expense 10,000 Rent expense 2,000 Total operating expenses 58,000 Income from operations 44,000 Other items: Loss on sale of equipment (2,000) Income before income tax 42,000 Income tax expense 16,000 Net income $ 26,000