Leach Inc. experienced the following events for the first two years of its operations: Year 1: 1. Issued $10,000 of common stock for cash. 2. Provided $120,000 of services on account. 3. Provided $31,000 of services and received cash. 4. Collected $89,000 cash from accounts receivable. 5. Paid $18,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible. Year 2: 1. Wrote off an uncollectible account for $680. 2. Provided $140,000 of services on account. 3. Provided $15,000 of services and collected cash. 4. Collected $122,000 cash from accounts receivable. 5. Paid $26,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible. LEACH INC. Income Statement For the Year Ended December 31, Year 1 \begin{tabular}{|l|l|l|} \hline & & \\ \hline Operating expenses & & \\ \hline & & \\ \hline & & \\ \hline Total operating expenses & & \\ \hline & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ LEACH INC. } \\ \hline \multicolumn{2}{|c|}{ Statement of Changes in Stockholders' Equity } \\ \hline \multicolumn{1}{|c|}{ For the Year Ended December 31, Year 1} \\ \hline Beginning common stock & & \\ \hline & & \\ \hline Ending common stock & & $ \\ \hline & & \\ \hline Beginning retained earnings & & \\ \hline & & \\ \hline Ending retained earnings & & $ \\ \hline Total stockholders' equity & & 0 \\ \hline \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ LEACH INC. } \\ \hline \multicolumn{2}{|c|}{ Statement of Cash Flows } \\ \hline For the Year Ended December 31, Year 1 & \\ \hline Cash flows from operating activities & & \\ \hline & & \\ \hline Net cash flow from operating activities & & $ \\ \hline Cash flows from investing activities & & \\ \hline Cash flows from financing activities & & \\ \hline & & \\ \hline Net cash flow from financing activities & & $ \\ \hline & & \\ \hline Net change in cash & & \\ \hline Ending cash balance & & \\ \hline \end{tabular} What is the net realizable value of the accounts receivable at December 31 , Year 1