Comparative Balance Sheet As of December 31, Year 1 Year 2 $20,000 40,000 30,000 90,000 $40,000 30,000 40,000 110,000 20,000 200,000 -20,000 200,000 $290.000 20,000 280,000 -60,000 240,000 $350.000 Assets Current assets Cash Accounts receivable Inventories Total current assets Property, plant, and equipment- Land Building and equipment Accumulated depreciation Total property, plant, and equipment Total Assets Liabilities and Shareholders' Equity Current liabilities Accounts payable Total current liabilities Noncurrent liabilities Bonds payable Notes payable Total noncurrent liabilities Shareholders' equity Common stock Retained earnings Total shareholders' equity Total Liabilities and Shareholders' Equity 40,000 40,000 60,000 60,000+ 100,000 40,000 140,000 80,000 60,000 140,000 40,000 70,000 110,000 $290,000 60,000 90,000 150,000 $350,000 Dividends declared and paid during Year 2 are $8,000. MBA Corporation sold one building for $100,000. The historical cost of the building was $160,000 and the accumulated depreciation was $80,000. MBA Corporation also purchased new equipment during the year for $240,000. Depreciation expense for the year for building and equipment was $120,000. (Hint: There is a gain/loss from the sale of the building in this example. If this is difficult for you, reconstruct the T-accounts like we did on the board in class. If you are still having difficulty- work on the rest of the problem and come back to the buildings and depreciation accounts last- we give plenty of partial credit)