Alliance Company Income Statement For the year ending 30-Jun-20 Sales revenue $700,000 Cost of sales $600,000 Gross profits $100,000 Operating expenses: Salary expense $50,000 Depreciation expense $15,000 Rent expense $3,000 Loss on sale of equipment $2,000 Profit before income taxes $30,000 Income tax expense $9,000 Profit after income taxes $21,000 Alliance Company Balance sheet Balance sheet at 30-Jun-20 30-Jun-19 Assets Current assets Cash and cash equivalents $1,000 $5,000 Accounts receivable $20,000 $14,000 Inventory $17,000 $20,000 Non-current assets Equipment, net $176,000 $125,000 Total assets $214,000 $164,000 Liabilities and shareholders' equityCurrent liabilities Accounts payable $20,000 $35,000 Accrued liabilities $8,000 $6.000 Income tax payable $3,000 $4,000 Noncurrent liabilities Debentures $81,000 $50,000 Shareholders' equity Share capital $82,000 $50,000 Retained earnings $20,000 $19,000 Total liabilities and shareholders' equity $214,000 $164,000 Following transactions took place for the year ending 30 June 20 Cash purchase of equipment $140,000 Cash payment of dividends $18,000 Issue of ordinary shares to repay debentures $13,000 issue of debentures to borrow cash $44,000 Cash payment of debentures $5,000 Cash issue of ordinary shares $19,000 Cash receipt from sale of equipment $74,000 Additional Information: Carrying amount of sale of $76,000 equipment