The following transactions took place during the year 2020 for Larkspur Inc. 1. 2 3. 4. 5. Convertible bonds payable with a carrying amount of $368,000 along with conversion rights of $10,100 were exchanged for common shares. The net income for the year was $422,000. Depreciation charged on buildings was $95,500. Recorded the investment income earned from investment in associate. Blue Ltd., using the equity method. Blue's earnings for the year were $127,000 and Larkspur Inc. owns 25% of the outstanding common shares. Old equipment was traded in on the purchase of new equipment, resulting in the following entry: Equipment 51.000 Accumulated Depreciation - Equipment 30,800 Equipment 40,400 Cash 32,200 Gain on Disposal of Equipment 9.200