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 $ 702,000 96,000 606,000 152,000 454,000 10,000 464,000 139,200 $ 324,800 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Assets Cash 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 Year 1 $ 290,900 230,000 $ 70,900 123,000 319,000 279,000 10,500 21,000 850,400 493,900 638,000 504,000 166,200 131,900 471,800 372,100 46,000 $ 1,368,200 $ 866,000 $314,000 48,000 $ 250,000 52,000 84,500 80,000 446,500 382,000 192,000 101,000 638,500 483,000 344,000 290,000 385,700 93,000 729,700 383,000 $ 1,368,200 $ 866,000 Equipment that had cost $30,200 and on which there was accumulated depreciation of $11,200 was sold during Year 2 for $29,000. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock.