Instructions From the foregoing information, prepare an income statement for the year 2010. E4-4 (Income Statement Items) The following balances were...

InstructionsFrom the foregoing information, prepare an income statement for the year 2010.E4-4 (Income Statement Items) The following balances were taken from the books of Parnevik Corp.on December 31, 2010.86,000 Accumulated depreciation—building $ 28,000Cash 51,000 Notes receivable 155,000Sales 1,280,000 Selling expenses 194,000Accounts receivable 150,000 Accounts payable 170,000Prepaid insurance 20,000 Bonds payable 100,000Sales returns and allowances 150,000 Administrative and general expenses 97,000Allowance for doubtful accounts 7,000 Accrued liabilities 32,000Sales discounts 45,000 Interest expense 60,000Land 100,000 Notes payable 100,000Equipment 200,000 Loss from impairment of plant assets 120,000Building 140,000 Share capital—ordinary 500,000Cost of goods sold 621,000 Retained earnings 21,000Accumulated depreciation—equipment 40,000Assume the total effective tax rate on all items is 34%