Balance Sheets As of December 31 Year 21 Year 1 Assets Cash $24,706 $2,648 Accounts receivable 1,708 1,025 Inventory 6,558 6,148 Equipment 21,086 44,756 Accumulated depreciation-equipment (9,206) (18,257) Landi 19,405 9,765 Total assets $64,257 $46,085 Liabilities and equity Accounts payable (inventory) $2,758 $4,455 Long-term debt 2,650 6,057 Common stock 21,100 8,000 Retained earnings 37,749 27,573 Total liabilities and equity 564,257 $46,085 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating incone Gain on sale of equipment Loss on disposal of land Net income Additional Data $38,930 (15,430) 23,500 (3,587) 19,913 500 (60) $20,353 1. During Year 2, the company sold equipment for $18,862; it had originally cost $31,000. Accumulated depreciation on this equipment was $12,638 at the time of the sale. Also, the company purchased equipment for $7,330 cash. 2. The company sold land that had cost $3,460. This land was sold for $3,400, resulting in the recognition of a $60 loss. Also, common stock was issued in exchange for title to land that was valued at $13,100 at the time of exchange. 3. Paid dividends of $10,177.