Problem 23-2 The comparative balance sheets for Sunland Corporation show the following information. December 31 2017 2016 Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents $33,200 $13,000 12,200 10,100 8,900 2,900 030,100 45,300 20,200 6,300 $107,800 $91,500 12,100 -0 5,000 Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings $3,000 $4,500 4,500 6,000 2,900 5,000 4,000 31,000 25,000 43,000 33,000 6,600 $107,800 $91,500 2,000 5,000 -0 3,000 20,800 Additional data related to 2017 are as follows 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. 2. $10,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $5,000 4. On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,300 (net of $2,000 taxes) 5. Investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past. 6. Cash was paid for the acquisition of equipment