As of December 31, 2015, Donnelly Corporation had 350,000 common shares authorized, 250,000 of which had been issued for proceeds of $2.5 million. The Retained Earnings balance was $1,200,000. On January 18, 2016, 40,000 common shares were issued at $20 per share. Profit for 2016 was $180,000. No dividends were declared in 2016. The balances in the shareholders' equity section of the statement of financial position at December 31, 2016 will be: O Retained earnings $1,020,000; Common shares issued $3,300,000 O Retained earnings $1,380,000; Common shares issued $3,300,000 O Retained earnings $1,380,000; Common shares issued $290,000 O Retained earnings $1,380,000; Common shares issued $2,580,000 None of the above On April 1, 2019, Tool Ltd. sells equipment for $18,000. The original cost was $50,000, the estimated residual value was $8,000, and the expected useful life was seven years. On December 31, 2018 the Accumulated Depreciation account had a balance of $29,400. If the straight-line method of depreciation was used, the gain or loss on the sale was 0 $1,100 loss. O $2,600 gain. O $850 loss. O $300 gain. O None of the above. An aging of a company's accounts receivable indicates that $10,000 is estimated to be uncollectible. If the Allowance for Doubtful Accounts has a $1,400 credit balance before adjustment, the adjustment to record bad debts for the period will require a O debit to Bad Debts Expense for $15,400. O debit to Bad Debts Expense for $8,600. O debit to Bad Debts Expense for $11,400. O debit to Allowance for Doubtful Accounts for $10,000. O none of the above