12 The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also. 1.53 points ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 eBook Assets Cash Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Less: Accumulated depreciation Patent Print $ 132 202 19 219 17 193 220 424 (110) 44 $ 1,360 $ 93 218 16 212 24 137 162 424 (144) 47 $ 1,189 Recenes References $ $ $ Liabilities Accounts payable Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings Less: Treasury stock 62 19 21 24 35 29 86 227 (34) 89 30 16 28 20 0 299 (40) 422 97 466 119 87 240 (21) $ 1,360 228 $ 1,189 > 1,00 > 1,109 12 1.53 points $ 555 eBook ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue $ 528 Investment revenue 24 Gain on sale of Treasury bills Expenses and loss: Cost of goods sold 192 Salaries expense 85 Depreciation expense 13 Amortization expense 3 Insurance expense 19 Interest expense 40 Loss on sale of equipment 23 Income tax expense 48 Net income * | Samakatsu Print References 423 $ 132 Additional information from the accounting records: a. Investment revenue includes Arduous Company's $19 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2021 at a gain of $3 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $94 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $24 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $15 million. e. The preferred stock of Tory Corporation was purchased for $37 million as a long-term investment f. Land costing $58 million was acquired by issuing $29 million cash and a 12%, four-year, $29 million note payable to the seller. g. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $94 million. Annual lease payments of $8 million are paid at the beginning of each year starting January 1, 2021. h. $72 million of bonds were retired at maturity. i. In February, Arduous issued dividend (8.8 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. j. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $21.00 million. Mc