The comparative balance sheets for Vaughn Corporation show the following information. Allowance for doubtful accounts uiviaenas paysie 4=3,000 Notes payable, short-term (nontrade) 3.000 4.000 Longsterm notes payable 31,00025,000 Commonstock 43,00033,000 Retained earnings \begin{tabular}{rr} 20,600 & 5,600 \\ \hline$107,500 & $90,400 \\ \hline \end{tabular} Additional data related to 2025 are as follows. 1. Equipment thathad cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500 2. $10,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends pald were $5,000. 4. On January 1, 2025, the building was completely destroyed by a flood. Insurance proceeds on the building were $30.000 inet of $2,000 taxes) 5. Debt investments (avaitable-forsale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past. 6. Cash was paid for the acquisition of equipment 7. Along-termnote for $16,000 was issued for the acquisition of equipment Interest of $2,000 and income taxes of $6,500 were paid in cashi. Adjustments to reconcile net income to Supplemental disclosures of cash flow information: Retired Notes Paratie by Issuing Comenon Stock