Karr, Inc. reported net income of $300,000 for 20X4. Changes occurred in several Balance Sheet accounts as follows: Equipment $25,000 increase Accumulated depreciation $40,000 increase Note payable $30,000 increase Additional information: 1. During 20X4, Karr sold equipment costing $25,000, with accumulated depreciation of $12,000, for a gain of $5,000. 2. In December 20X4, Karr purchased equipment costing $50,000 with $20,000 cash and a 12% note payable of $30,000. 3. Depreciation expense for the year was $52,000.