The following transactions occurred during December. Dec. 2 Purchased equipment for $25,600, plus sales taxes of $1,280 (paid in cash). 2 Sarasota sold for $5,600 equipment which originally cost $8,000. Accumulated depreciation on this equipment at January 1,2025 , was $2,880;2025 depreciation prior to the sale of equipment was $1,320. 15 Sarasota sold for $8,000 on account inventory that cost $5,600. (Sarasota records sales under a perpetual inventory system.) 23 Salaries and wages of $10,560 were paid. Adjustment data: 1. Sarasota estimates that uncollectible accounts receivable at year-end are $6,400. 2. The note receivable is a one-year, 8% note dated April 1,2025 . No interest has been recorded. 3. The balance in prepaid insurance represents payment of a \$5,760, 6-month premium on September 1, 2025. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $48,000. 5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. 6. The equipment purchased on December 2, 2025, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,880. 7. The patent was acquired on January 1,2025 , and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31,2025 , total $3,520. 9. Both the short-term and long-term notes payable are dated January 1,2025 , and carry a 10% interest rate. All interest is payable in the next 12 months. 10 Income tax expense was $24,000. It was unpaid at December 31. W. Journal entry: SARASOTA CORP. Income Statement For the Year Ended December 31, 2025 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Bad Debt Expense Amortization Expense Insurance Expense Salaries and Wages Expense Depreciation Expense Other Operating Expenses Total Operating Expenses Income From Operations Other Revenues and Gains Gain on Disposal of Plant Assets Interest Revenue Other Expenses and Losses Interest Expense Income Before Income Taxes Income Tax Expense Net Income / (Loss) $ Prepare a 2025 retained earnings statement. (List items that increase retained earnings first.)