Additional information: 1. On December 31,2019 , Cullumber acquired 25% of Bligh Corp.'s common shares for $267,100. On that date, the carrying value of Bligh's assets and liabilities was $1,068,400, which approximated their fair values. Having demonstrated the ability to exercise significant influence over its associate Bligh, Cullumber accounts for the investment using the equity method. Bligh reported income of $94,400 for the year ended December 31,2020 . No dividend was paid on Bligh's common shares during the year. 2. During 2020 , Cullumber lent $289,800 to TMC Corp., an unrelated company. TMC made the first semi-annual principal repayment of $38,300, plus interest at 10%, on December 31,2020 . The following is Cullumber Corp.'s comparative SFP at December 31,2020 and 2019 , with a column showing the increase (decre rom 2019 to 2020: 3. On January 2,2020, Cullumber sold equipment costing $70,300, with a carrying amount of $42,200, for $39,700 cash. 4. On December 31, 2020, Cullumber entered into a right-of-use lease for equipment. The present value of the annual lease payments is $269,100, which equals the equipment's fair value. Cullumber made the first rental payment of $51,000 when due on January 2,2021. 5. Net earnings for 2020 were $242,100. The amount of income taxes paid was $149,700. 6. The amount of interest paid during the year was $14,900 and the amount of interest earned was $14,490. Cullumber has adopted the policy of classifying interest received and interest paid as operating cash flows. 7. Cullumber declared and paid cash dividends for 2020 and 2019 as follows: 8. The bank loan listed in the comparative SFP represents a line of credit used to finance operating cash demands of the business. The limit set on the operating line by the lender is $600,000. Although the operating line functions similarly to a business. The limit set of no time during 2020 did the operating line become reduced to nil. ment of Cash Flows (Indirect Method) r the Year Ended December 31, 2020 sh Flows from Operating Activities st Earnings $ 242,101 stments to reconcile net income to ash provided by operating activities: lepreciation Expense ish Flows trom Hinancing Activities st Cash Used by Financing Activities t. Decrease in Cash sh, January 1, 2020 sh, December 31,2020 cash investing and financing activities: ain on Disposal of Equipment $ lecrease in Income Tax Payable ash Flows from Investing Activities ish Flows from Investing Activities roceeds from Sale of Equipment oan to TMC Corp