Problem 23-8 Comparative balance sheet accounts of Sharpe Company are presented below SHARPE COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 2017 2016 Cash Accounts Receivable Inventory Debt investments (available-for-sale) Equipment Buildings Land $70,000 $51,000 55,000 130,000 5,000 61,000 55,00085,000 0,000 48,000 145,000 145,000 40,000 25,000 $610,000 $545,000 Totals Credit Balances Allowance for Doubtful Accounts Accumulated Depreciation-Equipment Accumulated Depreciation-Buildings Accounts Payable Income Taxes Payable Long-Term Notes Payable Common Stock Retained Earnings $10,000 $8,000 14,000 37,000 28,000 66,000 60,000 12,000 10,000 62,000 70,000 310,000 260,000 95,000 $610,000 $545,000 21,000 92,000 Totals Additional data: 1. Equipment that cost $10,000 and was 60% depreciated was sold in 2017 2. Cash dividends were declared and paid during the year 3. Common stock was issued in exchange for land. 4. Investments that cost $35,000 were sold during the year 5. There were no write-offs of uncollectible accounts during the year Sharpe's 2017 income statement is as follows Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses (includes depreciation expense and bad debt expense) Income from operations Other revenues and expenses $950,000 600,000 350,000 250,000 100,000 Gain on sale of investments $15,000 Loss on sale of equipment (3,000) 12,000 112,000 Income before taxes