2017 if the cost were recognized as maintenance expense Problem 6-3 Matlack Company began operations when it acquired on January 1, 2013. The cash acquired was immediately used to purchase equipment for that had a used to produce the following revenue stream (assume all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $202,500 cash from the issue of common stock $202,500 $40,500 salvage value and an expected useful life of four years. The equipment was $20,250 cash. Matlack Company uses straight-line depreciation. Asssume depreciation is the only expense to record. 2013 2014 2015 2016 2017 Revenue$37,800 41,400 S 43,200 $ 35,100 REQUIRED Prepare income statements, balance sheets, and statements of cash flows for each of the five years. Problem 7-1 The following transactions apply to Kramer Corp. for 2016