Mamma Ltd. had the following comparative statement of financial position: Mamma Ltd. Comparative Statement of Financial Position As at December 31 2020 2019 Cash $20,500 $12.500 Accounts receivable 34.000 25.500 Inventories 20.000 30,000 2.500 2,000 Prepaid insurance Equipment 102,000 90.000 (12.500 Accumulated depreciation equipment (22,500 $156,500 $147.500 Total assets $23,000 $20.000 Accounts payable 4,000 2,000 Wages payable 2.000 3,000 Interest payable 4,000 5,000 Income taxes payable Interest payable 2,000 3,000 Income taxes payable 4,000 5,000 Long-term debt 30,000 34,500 Bonds payable 0 350 Common shares 65,000 64,650 Retained earnings 28.500 18.000 Total liabilities and shareholders' equity$156,500 $147,500 Additional information: 1. Net income for the fiscal year was $13,500. 2. Equipment that costing $10,000 was sold for a gain of $1,000 during 2020. The equipment's accumulated depreciation was $7,000. 3. New debt amounting to 1,000 was incurred during the year. 4. Conversion of bonds payable to common shares for $350. Required