The following is Sullivan Corp.s comparative statement of financial position accounts at December 31, 2022 and 2021,

Question:

The following is Sullivan Corp.’s comparative statement of financial position accounts at December 31, 2022 and 2021, with a column showing the increase (decrease) from 2021 to 2022.

Additional information:

1. On December 31, 2020, Sullivan acquired 25% of Myers Co.’s ordinary shares for $275,000. On that date, the carrying value of Myers’ assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2022. No dividend was paid on Myers’ ordinary shares during the year.

2. During 2022, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semi-annual principal repayment of $50,000, plus interest at 10%, on December 31, 2022.

3. On January 2, 2022, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash.

4. On December 31, 2022, Sullivan entered into a finance lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2023.

5. Net income for 2022 was $370,000.

6. Sullivan declared and paid cash dividends for 2022 and 2021 as shown below.