Please also help with the additional question. Thank you very much

Presented below are the financial statements of Warner Company WARNER COMPANY Comparative Balance Sheet December 31 Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 2017 35,000 $20,000 20,000 28,000 20,000 60,000 78,000 2016 32000) 24.000) $111,000 $108,000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total S19,000 $15,000 7,000 17,000 33,000 18,000 14,000 8,000 38,000 S111,000 $108,000 WARNER COMPANY Income Statement For the Year Ended December 31, 2017 $242,000 175,000 67,000 Sales Revenue Cost of goods sold Gross proft Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $18,000 6.000 24.000 43,000 3,000 40,000 8,000 S32,000 Additional data: Depreciation expense was $17,500. 2. Dividends declared and paid were $20,000. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had accumulated depreciation of $9,500 at the time of sale