Use the following financial information to find the entry you would make on an income statement for NET INCOME (LOSS) for the year ended December 31, 2006: Gross sales, $110,000; sales returns and allowances, $8,000; sales discounts, $2,400. Merchandise inventory, January 1, 2006, $50,000; merchandise inventory, December 31, 2006, $43,100; net purchases, $80,500; freight in, $975; salaries, $92,900; rent, $15,500; utilities, $1,275; insurance, $2,450; and income tax, $15,650.