Sarasota Corp.'s balance sheet at December 31, 2019, is presented below. SARASOTA CORP. Balance Sheet December 31, 2019 Cash $26,000 Accounts payable $25,000 Accounts receivable 46,000 Common stock ($10 par) 75,000 Allowance for doubtful accounts (1,800) Retained earnings 151,000 Supplies 4,300 Land 42,500 Buildings 155,000 Accumulated depreciation-buildings (21,000) $251,000 $251,000 During 2020, the following transactions occurred. 1. On January 1, 2020, Sarasota issued 1,400 shares of $41 par, 7% preferred stock for $60,200. 2. On January 1, 2020, Sarasota also issued 840 shares of the $10 par value common stock for $22,000. 3. Sarasota performed services for $329,000 on account. 4. On April 1, 2020, Sarasota collected fees of $38,000 in advance for services to be performed from April 1, 2020, to March 31, 2021. 5. Sarasota collected $278,000 from customers on account. 6. Sarasota bought $34,500 of supplies on account. 7. Sarasota paid $31,000 on accounts payable. 8. Sarasota reacquired 470 shares of its common stock on June 1, 2020, for $28 per share. 9. Paid other operating expenses of $187,000. 10. 11. On December 31, 2020, Sarasota declared the annual preferred stock dividend and a $1.2 per share dividend on the outstanding common stock, all payable on January 15, 2021. An account receivable of $1,500 which originated in 2019 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $5,500 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $3,500 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $11,000. 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)