The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets

Additional Information

a.	A $27,000 note payable is retired at its $27,000 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 $62,500 cash.
d.	Received cash for the sale of equipment that had cost $49,500, yielding a $3,000 gain.
e.	Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
f.	All purchases and sales of inventory are on credit.