Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement follow, along with additional information. Current Previous Year Year Balance Sheet at December 31 $ 6,300 $4,500 1,950 6,000 Accumulated Depreciation-Equipment (1,700)(1,350) Cash Accounts Receivable Equipment 1,000 6,600 $12,200 $11,100 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 400 1,500 6,000 3,800 $ 5001,100 750 500 6,000 2,750 $12,200 $11,100 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense $39,500 37,000 350 1,100 Net Income $1,050 Additional Data: a. Bought new hockey equipment for cash, $600. b. Borrowed $1,000 cash from the bank during the year c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash