Financial data for Redstone Company for last year appear below: Redstone Company Statements of Financial Position Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment (net) Investment in Balsam Company Land (undeveloped) $ 292,000 $ 381,892 182,000 279,000 433,000 333,000 278,000 196,000 257,000 487,000 302,000 278,000 Total assets $1,812,000 $1,886,892 Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity $ 191,000 $140,000 895,000 851,892 895,000 726,000 Total liabilities and owners' equity $1,812,000 $1,886,892 Redstone Company Income statement Sales Less operating expenses $ 2,730,000 2,088,450 641,550 Net operating income Less interest and taxes Interest expense lax expense $ 98,700 230,958 329,658 Net income $311,892