SUB INST 10 Part II: Statement of Cash Flows (13 points) A comparative balance sheet for Jeffrey Company appears below: Assets Cash Accounts receivable JEFFREY COMPANY Comparative Balance Sheets Inventories Land Equipment Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total Additional information: 1. Net income for 2022 was $8,000. December 31 2022 2021 $ 7,300 8,700 $ 2,200 7,600 17,000 19,100 7,200 10,000 26,000 20,000 (6,600) (3,200) $ 59,600 $55,700 $ 3,700. $ 4,700 15,000 21,000 21,600 17,400 19.300 12,600 $ 59,600 $55,700 2. Cash dividends of $2,200 were declared and paid. 3. Bonds payable amounting to $6,000 were redeemed for cash $6,000. 4. Common stock was issued for $4,200 cash. 5. Equipment that cost $5,000 and had accumulated depreciation of $3,000 was sold for $1,500 during 2022. 6. Depreciation expense for the year was $1,100 1. Calculate the gain or loss on the sale of equipment. (3 points)