P7-5A The ledgers of Mid City Galleries Inc. contain the following balances as of December 31,2008.

Advertising expense $ 123,000 Commissions expense on art sales Depreciation expense 1,200,000

(administrative) 98,000 Dividend revenue 50,000 Insurance expense 600,000 Interest expense 98,000 Inventory, January 1 1,650,000 Inventory, December 31 Loss on the sale of office 1,424,000 equipment