20. (6 points) Use the following partial Balance Sheet, Inco…
20. (6 points) Use the following partial Balance Sheet, Income Statement, and additional information to answer the following questions: 12/31/x2 12/31/x1 Plant Assets 70,000 45,000 Accumulated Depreciation – Plant Assets (20,000) (22,000) Dividends Payable 2,000 3,000 Retained Earnings 275,000 150,000 Gain on Sale – Plant Assets 500 Net Income 135,000 Additional information: New plant assets were purchased for cash during the year. Old plant assets having an original cost of $10,000 were sold for $1,500 cash. A cash dividend was declared and paid during the year.
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