Financial statements for Crane Company are given below:

Crane Company Balance Sheet January 1, 2018 Assets Equities Cash $950000 Accounts payable $ 450000 Accounts receivable 866000 Buildings and equipment 3520000 Accumulated depreciation buildings and equipment (1300000) Common stock 2740000 Patents 429000 Retained earnings 1275000 $4465000 $4465000

Crane Company Statement of Cash Flows For the Year Ended December 31, 2018 Increase (Decrease) in Cash . Cash flows from operating activities Net income $1270000 Adjustments to reconcile net income to net cash provided by operating activities: Increase in accounts receivable $(390000) Increase in accounts payable 190000 Depreciationbuildings and equipment 364000 Gain on sale of equipment (145000) Amortization of patents 51000 70000 Net cash provided by operating activities 1340000 . Cash flows from investing activities Sale of equipment 290000 Purchase of land (594000) Purchase of buildings and equipment (1150000) Net cash used by investing activities (1454000) . Cash flows from financing activities Payment of cash dividend (355000) Sale of common stock 963000 Net cash provided by financing activities 608000 Net increase in cash 494000 Cash, January 1, 2018 950000 Cash, December 31, 2018 $1444000

Total assets on the balance sheet at December 31, 2018 are $6646000. Accumulated depreciation on the equipment sold was $335000.

The book value of the buildings and equipment at December 31, 2018 was

a. $4081000. b. $2861000. c. $3341000. d. $2931000.

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