The comparative balance sheets and income statements for Franklin Company follow: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Inventory Equipment $ 24,252 $ 2,564 1,873 1,124 6,531 6,123 16,842 40,642 Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity (6,701) (15,797) 18,290 8,450 $ 61,087 $ 43,106 $ 2,653 2,776 $ 4,286 6,344 23,300 32,358 9,000 23,476 $ 61,087 $ 43,106 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income $ 34,780 (13,785) 20,995 (3,870) 17,125 700 (60) $ 17,765 Additional Data 1. During Year 2, the company sold equipment for $18,034; it had originally cost $30,300. Accumulated depreciation on this equipment was $12,966 at the time of the sale. Also, the company purchased equipment for $6,500 cash 2. The company sold land that had cost $4,460. This land was sold for $4,400, resulting in the recognition of a $60 loss. Also, common stock was issued in exchange for title to land that was valued at $14,300 at the time of exchange. 3. Paid dividends of $8,883,