The following financial statements and additional information are reported.

IKIBAN INCORPORATED

Income Statement

Additional Information

a$.$ A $$30,000$ notes payable is retired at its $$30,000$ carrying $($book$)$ value in exchange for cash.

b$.$ The only changes affecting retained earnings are net income and cash dividends paid.

c$.$ New equipment is acquired for $$62,600$ cash.

d$.$ Received cash for the sale of equipment that had cost $$53,600,$ yielding a $$2,500$ gain.

e$.$ Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.

f$.$ All purchases and sales of inventory are on credit