Joyner Company's Income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income $ 710,000 TT 226,000 484,000 218,000 266,000 10,000 276,000 110,400 $ 165,600 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Assets Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets. Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Loan to Hymans Company Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 2 $ 139,200 251,000 319,000 Year 1 $ 41,600 146,000 275,000 9,500 19,000 718,700 481,600 624,000 513,000 166,100 131,200 457,900 381,800 42,000 0 $1,218,600 $ 863,400 $ 252,000 57,000 84,900 80,400 440,900 389,400 210,000 105,000 650,900 494,400 340,000 274,000 227,700 95,000 567,700 369,000 $1,218,600 $ 863,400 $ 311,000 45,000 Equipment that had cost $30,400 and on which there was accumulated depreciation of $11,500 was sold during Year 2 for $28,900. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock.