Question 50 The income statement, balance sheets, and additional information for Track Inc. are provided. Track Inc Income Statement For the Year Ended December 31, 2019 Revenues Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net Income Assets Current Assets: Cash Accounts receivable Inventory Prepaid rent Long-Term Assets: Track Inc Balance Sheets December, 31 2019 $300,000 4,000 304,000 127,000 25,000 40,000 16,000 12,000 220,000 $84,000 2018 $340,000 83,000 $187,000 95,000 121,000 138,000 7,000 5,000 Investment in stock 126,000 100,000 Land 230,000 260,000 Equipment 285,000 225,000 Accumulated depreciation -140,000 -100,000 Total Assets $1,052,000 $910,000 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable Interest payable Income tax payable Long-Term Liabilities: Notes payable Stockholders' Equity: Common stock Retained earnings Total Liabilities and Equity $40,000 $58,000 1,000 2,000 12,000 10,000 265,000 205,000 400,000 350,000 334,000 285,000 $1,052,000 $910,000 Additional Information for 2019: 1. Purchase additional investment in stocks for $26,000. 2. Sell land costing $30,000 for $34,000 resulting in a $4,000 gain on sale of land. 3. Issue common stock in exchange for cash $50,000. 4. Declared and paid a cash dividend of $35,000. 5. Purchase $60,000 in equipment by borrowing $60,000 with a note payable due in three years. No cash is exchanged in the transaction.