NEXTWAVE COMPANY

Comparative Balance Sheet

December $31$

$2008$

Assets

Cash

Accounts receivable

Inventories

Long$-$term investments

Capital assets

Accumulated amortization

$ $86,700$

$76,800$

$121,900$

$84,500$

$280,000$

$(79,500)$

$$570,400$

$2007$

$$

$ $47,250$

$57,000$

$92,650$

$97,000$

$235,000$

$(70,000)$

$$458,900$

Liabilities and shareholders' equity

Accounts payable

Income taxes payable

Bonds payable

Common shares

Retained earnings

$

$52,700$

$12,100$

$100,000$

$230,000$

$175,600$

$$570,400$

NEXTWAVE COMPANY

Income Statement Data

For the Year Ended December $31,2008$

$ $48,280$

$18,920$

$70,000$

$200,000$

$121,700$

$ $458,900$

Sales revenue

Gain on sale of capital assets

$$427,500$

$3,700$

$431,200$

Less

Cost of goods sold

$$199,500$

Operating expenses $($excluding amortization expense$)$

Amortization expense

Income taxes

$14,700$

$49,700$

$40,100$

Net income

$304,000$

$$127,200$

Additional information:

$$Some of the long$-$term investments were sold at their book value $($or carrying value$).$ As a result, there was no gain or loss on this transaction.

$$Capital assets costing $$47,000$ were sold for $$10,500,$ which was $$3,700$ more than their book value at the time of disposal.