Refer to the data of Torrance Associates Inc. in exercise E1-21.

{Requirements}
1. Prepare the income statement of Torrance Associates Inc. for the year ended December 31, 2020 2. What amount of dividends did Torrance declare during the year ended December 31, \(2020 ?\)

Exercise 1-21

Amounts of the assets and liabilities of Torrance Associates Inc., as of December 31, 2020, are given as follows. Also included are revenue and expense figures for the year ended on that date (amounts in millions):

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Property and equipment, net. Investment Long-term liabilities. Other expenses.. $4 Total revenue. 72 Receivables... 73 Current liabilities... 14 Common shares Cash....... 28 Interest expense.. Retained earnings, beginning.. 19 Salary and other employee expense...... Retained earnings, ending.. ? Other assets.. $ 35 253 290 12 43