Blue Planet Company$$s income statement and comparative balance sheets follow.

Blue Planet Company

Income Statement

For the Year Ended December $31,2023$

Sales $ $925,000$

Cost of goods sold $ $510,000$

Wages and other operating expenses $150,000$

Depreciation expense $41,000$

Patent amortization expense $8,000$

Interest expense $15,000$

Income tax expense $$ current $40,000$

deferred $14,000$

$54,000$

Loss on sale of equipment $4,000$

Gain on sale of investments $(5,000)777,000$

Net income $ $148,000$

Blue Planet Company

Balance Sheet as at $31$ December

$20232022$

Assets

Cash and cash equivalents $ $62,000$ $ $25,000$

Accounts receivable $51,00030,000$

Inventory $97,00077,000$

Prepaid expenses $11,00021,000$

Investments $\_\_\_\_57,000$

Land $195,000100,000$

Buildings $460,000350,000$

Accumulated depreciation, Buildings $(92,000)(75,000)$

Equipment $179,000225,000$

Accumulated depreciation, Equipment $(42,000)(46,000)$

Patents $54,00032,000$

Total assets $ $975,000$ $ $796,000$

Liabilities and Stockholders$$ Equity

Accounts payable $ $6,000$ $ $16,000$

Interest payable $7,0005,000$

Accrued expenses $21,00015,000$

Income tax payable $24,00010,000$

Bonds payable $158,000125,000$

Preferred stock $($$$100$ par value$)125,00075,000$

Common stock $($$$5$ par value$)$

$384,000$

Capital surplus $-$ Common $140,000124,000$

$364,000$

Retained earnings

Treasury stock

$150,000$

$62,000$

$ $975,000$

$(40,000)$

$ $796,000$

During $2023,$ the following transactions and events occurred in addition to the company$$s usual

business activities.

$1.$ Sold investments costing $$57,000$ for $$62,000.$

$2.$ Purchased land for cash.

$3.$ Capitalized an expenditure made to improve the building.

$4.$ Sold equipment for $$14,000$ cash that originally cost $$46,000$ and had $$28,000$ accumulated

depreciation. This means the book value of the equipment sold was $$46,000$ $$28,000=$

$$18,000.$ That is why the loss on sale of this equipment is reported as $$4,000.$

$5.$ Issued bonds at face value for cash.

$6.$ Acquired a patent with a fair value of $$30,000$ by issuing $300$ shares of preferred stock at par

value. Also issued an additional $200$ shares for a cash price of $$20,000.$

$7.$ Declared and paid a $$60,000$ cash dividend.

$8.$ Issued $4,000$ shares of common stock for cash at $$9$ per share.

$9.$ Recorded depreciation of $$17,000$ on buildings and $$24,000$ on equipment.