. On its January 1, 2016, balance sheet, Calvin Company reported equipment of $60,000 and

accumulated depreciation of $20,000. During 2016, Calvin sold equipment with an original cost

of $5,000. Selected information from Calvin's 2016 statement of cash flows follows:

Net income $20,000

Depreciation expense on equipment 2,000

Gain on sale of equipment 600

Proceeds from sale of equipment 1,500

Purchase of equipment 18,000

Required: Compute the amount of equipment and accumulated depreciation that should appear on Calvin's December 31, 2016, balance sheet.

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