New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $510,000. The ovens originally cost $701,000, had an estimated service life of 10 years, had an estimated residual value of $41,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. 4. Determine the financial statement effects of the sale of the ovens at the end of the second year. Note: Amounts to be deducted should be indicated by a minus sign. Assets Cash Accumulated Depreciation Balance Sheet 510,000 132,000 Liabilities. 50,800 Stockholders' Equity Common Retained Stock Earnings Loss Revenues Income Statement Expenses 59,000 Depreciation Expense 140,200 Net Income (191,000)

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