Wildhorse Ltd., which follows ASPE had the following comparative statement of financial position: Wildhorse Ltd. Comparative Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory Prepaid insurance Equipment Accumulated depreciation-equipment Patents Total assets 2021 2020 $ 77,080 $ 47,000 127,840 95,880 75,200 112,800 9,400 7,520 289,520 244,400 (65,800 ) (47,000 ) 75,200 94,000 $ 588,440 $ 554,600 Liabilities and Shareholders' Equity Accounts payable $ 86,480 $ 75,200 Interest payable 7,520 11,280 Salaries and wages payable 15,040 7,520 Income taxes payable 15,040 18,800 Long-term note payable 112,800 129,720 Common shares 244,400 244,400 Retained earnings 107,160 67,680 Total liabilities and shareholders' equity $ 588,440 $ 554,600 Additional information: 1. Net income for the fiscal year was $50,760. 2. Equipment that cost $37,600 and was 70% depreciated was sold during 2021, for a gain of $3,760. 3. No patents were purchased or sold during the fiscal year.