Acme Inc. sold equipment recorded at $180,000 on the balance sheet. They had taken depreciation of $120,000 on the equipment. They had a gain of $40,000. Prepare the journal entry. 1. The beginning balance in retained earnings was $1,000,000. The company recorded net income of $200,000 for the year. The ending balance in retained earnings was $800,000. How much in dividends did the company pay? 2. The beginning balance in Accumulated Depreciation totaled $500,000. The ending balance in accumulated depreciation totaled $600,000. The company sold a truck during the year that had accumulated depreciation of $5,000. How much in depreciation should be added to net income to determine cash flows from operating activities? 3