ABC Inc. is a calendar year, accrual basis taxpayer engaged in the manufacture and sale of furniture.ABC Inc. was incorporated on January 8, 1995, and its tax information is as follows:

ABC Inc.

2445 Main St.

Champaign, IL 61821

Employer Identification Number: 98-7654321

During the year, ABC Inc. had the following items of income and expense:

Item Amount Gross Sales $2,000,000 Cost of Goods Sold $740,000) Salaries and Wages ($250,000) Repairs and Maintenance ($70,000) Business Meals Expense (total) ($4,300) Dividends received from XYZ Inc. (ABC Inc. $40,000 is a 33% shareholder of XYZ Inc.) Long-Term Capital Gain $5,200 Long-Term Capital Loss ($6,000) Charitable Contributions (all cash) ($70,000) Interest expense ($9,000) Rent expense ($50,000) Advertising expense ($2,200) State income tax expense ($15,000)12/31/18 12/31/19 Cash $85,000 ??? Accounts Receivable $33,000 $22,000 Inventories $200,000 $200,000 Fixed Assets $100,000 $100,000 Accumulated Depreciation ($14,290) ??? Other Current Asset $1,077 Total Assets $403,710 ??? Accounts Payable $65,000 $52,000 Long-Term Loan Payable $305,000 $255,000 Total Liabilities $370,000 $307,000 Paid-In-Capital $1,000 $1,000 Retained Earnings $32,710 ??? Total Liabilities & Equity $403,710