You are an accountant for E&B Partners LLP. Below are the financial statements provided to you by your client, Julia Ogden, President of Ogden Limited.

Additional information regarding fiscal 2020:

1. New equipment costing $77,500 was purchased for cash.
2. Old equipment costing $22,500 was sold for $10,400 cash when the carrying amount was $12,500.
3. Loans in the amount of $28,500 were paid off during the year.
4. Cash proceeds from the issuance of 10,000 new common shares totaled $119,000

Ogden Limited Balance Sheet As at December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation Total 2020 44,900 103,000 97,000 37,500 80,500 235,000 (65,300) $532,600 2019 32,600 60,500 119,500 38,000 74,000 180,000 (58,600) $446,000 2020 Liabilities and Shareholders' Equity Accounts payable Accrued expenses Long-term debt Total liabilities 97,500 29,000 133,500 260,000 2019 79,500 24,500 162,000 266,000 Common shares Retained earnings Total shareholder's equity 209,000 63,600 272,600 90,000 90,000 180,000 Total $532,600 $446,000 Ogden Limited Income Statement For the year ended December 31, 2020 $502,000 Sales Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense Loss on sale of equipment Total expenses $300,000 66,500 16,700 14,000 2,100 399,300 Income before income tax Income tax expense Net income 102,700 13,300 $ 89,400