The records of Koop Co. provided the following information for the year ended 31 December 20X8:

Additional information:

a. Sold equipment for cash (cost, $30,000; accumulated depreciation, $18,000).

b. Purchased land, $40,000 cash.

c. Acquired land for $42,000 and issued common shares as payment in full.

d. Acquired equipment, cost $32,000; issued a $32,000, three-year, interest-bearing note payable.

Required:

Prepare the SCF, using the two-step indirect method. Analyze every account to ensure all changes are included. Assume unexplained changes are from logical sources. Include required note disclosure of non-cash transactions. Prepare separate disclosure of cash paid for interest and income tax, as is required by ASPE.

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Statement of Comprehenslve Income For the year ended 31 December 20x8 Sales revenue $ 360,000 Cost of goods sold (262,000) Depreciation expense (20,000) Insurance expense (2,000) Interest expense (4,000) Salaries and wages expense (24,000) Remaining expenses (26,000) Loss on sale of equipment (4,000) Income tax expense (16.000) Net earnings and comprehensive income $ 2.000 Statement of Financlal Position As of 31 December 20х8 20X7 $ 122,000 $ 70,000 Cash Accounts receivable 62,000 57,000 Inventory 31,000 20,000 Prepaid interest 2,800 4,800 Buildings and equipment 162,000 160,000 Accumulated depreciation (42,000) (40,000) Land 162,200 80,200 Total $500,000 $352,000 Accounts payable $ 41,000 $ 36,000 Wages payable 4,000 8,000 Income tax payable 11,000 Notes payable, long-term 112,000 60,000 Common shares 286,000 00,000 Retained earnings 46,000 48,000 Total $500,000 $352,000