Statement of CF Practice Question The Balance Sheet for ABC Corporation for the years-ending 12/31/04 and 12/31/05 is provided below. Also, provided are some details related to the individual account balances. The Income Statement for the year-ending 12/31/05 is provided on the following page: ABC Corporation -Balance Sheet 12/31/04 12/31/05 ASSETS Cash $ 53,000 71,000 Accounts Receivable (net) 123,000 104,000 Inventory 222,000 186,000 Total Current Assets 398,000 361,000 Land [1] 162,000 135,000 Plant & Equipment [2] 180,000 246,000 Less: Accum. Depr. [3] (65,000) (84,000) TOTAL ASSETS $675,000 $ 658,000 LIABILITIES Accounts Payable 53,000 48,000 Bonds Payable Current [4] 15,000 15,000 Interest Payable 18,000 25,000 Total Current Liabilities 86,000 89,000 Bonds Payable [4] 180,000 265,000 Def. Income Taxes Payable 68.000 83,000 TOTAL LIABILITIES 334,000 437,000 SHAREHOLDERS' EQUITY Common Stock 356,000 185,000 Retained Earnings (15.000) 36,000 TOT. SHAREHOLDERS' EQUITY 341,000 221,000 TOT. LIAB & SHARE. EQUITY $675,000 $ 658,000 [1] Land that originally cost $27,000 was sold for $25,000 of cash. [2] Equipment with an original cost of $ 50,000 was sold during the year. Cash received from these sales totaled $ 46,000. The book value of the equipment at the time of the sale was $ 26,000, and the gain of S 20,000 is included in "Other Income". Equipment purchased during the year totaled $ 116,000.