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: $719,000 167,000 552,000 218,000 334,000 Gain Income before taxes Income taxes Net income 5,000 339,000 101,700 $ 237,300 on sale of equipment Its balance sheet amounts at the end of Years 1 and 2 are as follows