Question 12 The North Corp. has prepared the following comparative statements of financial position at December 31, 2019 and 2020: The North Corp. follows ASPE. Cash Accounts receivable.. Inventory. Prepaid expenses. 2020 2019 $ 95,000 $ 30,000 48,000 59,000 65,000 58,000 12,000 6,000 420,000 350,000 Property, plant & equipment Accumulated depreciation.. Goodwill. Accounts payable Accrued liabilities. Mortgage payable.. Preferred shares. Common shares Retained earnings.. (150,000) 39.000 $529,000 $ 38,000 8,000 (125,000) 64.000 $442.000 $ 52,000 18,000 25,000 150,000 215,000 200,000 200,000 43.000 22.000 $529,000 $442,000 The condensed income statement for 2020 is as follows: Sales Cost of sales. Gross profit. Operating expenses. Net income $680,000 373.000 307,000 240,000 $ 67,000