The following information was drawn from DBTs financial records as at June 30, 2021:

Balance Sheet
As at June 30
		2021		2020
Assets
	Cash	584,500		432,000
	Accounts receivable	580,000		615,000
	Inventory	1,269,000		972,000
	Prepaid operating expenses	92,000		97,000
	Long term Investments	360,000		600,000
	Equipment	2,720,000		2,781,000
	Less: Accumulated depreciation	(1,525,000)		(1,400,000)
		4,080,500		4,097,000
Liabilities and Shareholders' Equity
	Accounts payable	500,000		464,000
	Current income tax payable	106,000		97,500
	Deferred income tax liability	19,000		11,000
	Bonds payable	1,230,000		1,540,000
	Common shares	645,000		600,000
	Retained earnings	1,580,500		1,384,500
		4,080,500		4,097,000
	Income Statement
	For the year ended June 30, 2021
	Sales			2,384,000
	Cost of goods sold			1,435,000
	Gross profit			949,000
	Operating expenses			360,000
	Income from operations			589,000
	Interest expense			13,900
	Gain on sale of equipment			14,000
	Income before income tax			589,100
	Income tax expense:
	Current			102,800
	Deferred			8,000
	Net income			478,300

Depreciation expense is included in operating expenses. During the year, a piece of equipment that originally cost $140,000 was sold for cash. The equipment was 30% depreciated at the time of the sale. Long-term investments were sold at cost for cash during the year