Problem 23-2 Your answer is partially correct. Try again The comparative balance sheets for Ayayai Corporation show the following information December 31 2017 2016 as Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents $33,700 $13,200 9,900 9,100 3,000 29,500 19,800 6,100 $107,800 $90,600 12,100 12,000 45,000 5,000 Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings $3,100 $%4,500 4,500 6,100 3,000 4,900 4,000 31,000 25,000 43,000 33,000 5,600 $107,800 $90,600 2,000 5,000 2,900 20,800 Additional data related to 2017 are as follows 1. Equipment that had cost $11,100 and was 40% depreciated at time of disposal was sold for $2,500 2. $10,000 of the long-term note payable was paid by issuing common stock 3. Cash dividends paid were $4,900 4. On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,200 (net of $2,100 taxes) 5. Investments (available-for-sale) were sold at $1,800 above their cost. The company has made similar sales and investments in the past. 6. Cash was paid for the acquisition of equipment. 7. A long-term note for $16,000 was issued for the acquisition of equipment. 8. Interest of $2,000 and income taxes of $6,400 were paid in cash