Presented here are the financial statements of Waterway Company. Additional data: 1. Depreciation expense was $14,000. 2. Dividends declared and paid were $16,000. 3. During the year, equipment was sold for $6,800 cash. This equipment originally cost $14,400 and had accumulated depreciation of $7,600 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash