The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Equipment Assets Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Excess of paid-in capital over par Retained earnings Total liabilities and stockholders' equity Dec. 31, 2018 Dec. 31, 2017 $76,790 $94,200 117,990 126,990 168,570 157,410 6,870 4,770 343,370 282,010 (89,280) (69,160) $624,310 $596,220 $131,110 $124,610 0 178,870 21,000 13,000 320,000 168,000 152,200 111,740 $624,310 $596,220 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $103,580. b. Depreciation reported on the income statement, $43,530. c. Equipment was purchased at a cost of $84,770, and fully depreciated equipment costing $23,410 was discarded, with no salvage d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.