Instant Brake Inc.$$s comparative balance sheet information at December $31,2023$ and $2022,$ and its income statement for the year ended December $31,2023,$ are as follows:

Instant Brake Inc.

Income Statement

December $31,2023$

Sales $ $884,000$

Cost of goods sold $574,000$

Gross profit $ $310,000$

Operating expenses $ $132,700$

Depreciation expense $41,260173,960$

Operating Profit $136,040$

Loss on sale of equipment $10,430$

Investment income $17,520$

Profit before taxes $143,130$

Income taxes $30,000$

Profit $ $113,130$

Instant Brake Inc.

Balance Sheet Information

December $31$

$20232022$ Net Change

Cash $ $46,000$ $ $24,560$ $ $21,440$

Cash equivalents $23,2809,20014,080$

Accounts receivable $87,92035,44052,480$

Inventory $113,84081,52032,320$

Investment $023,280(23,280)$

Land $76,40076,4000$

Building and equipment $428,660446,180(17,520)$

Accumulated depreciation $116,05094,96021,090$

Accounts payable $13,73037,400(23,670)$

Dividends payable $1,200800400$

Bonds payable $22,000022,000$

Preferred shares $81,20081,2000$

Common shares $405,680405,6800$

Retained earnings $136,24076,54059,700$

During $2023,$ the following transactions occurred:

Purchased equipment for $$20,400$ cash.

Sold the investment on January $1,2023,$ for $$40,800,$ resulting in investment income of $$17,520.$

Sold equipment for $$7,320$ cash that had originally cost $$37,920$ and had $$20,170$ of accumulated depreciation.

Issued $$22,000$ of bonds payable at face value.