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Blossom Companyreported the following information for 2017. Additional information: 1.Operating expenses include depreciation expense of $40,160. 2.Land was sold at its book value for cash.

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Blossom Companyreported the following information for 2017.

Additional information:

1.Operating expenses include depreciation expense of $40,160.

2.Land was sold at its book value for cash.

3.Cash dividends of $85,680were declared and paid in 2017.

4.Equipment with a cost of $166,220was purchased for cash. Equipment with a cost of $51,060and a book value of $35,860was sold for $33,860cash.

5.Bonds of $50,290were redeemed at their face value for cash.

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Blossom Company Comparative Balance Sheets December 31 Change Assets 2017 2016 Increase/Decrease Cash $53,860 $35,980 $17,880 Increase Accounts receivable 61,510 22,220 39,290 Increase Inventory 43,840 0 43,840 Increase Prepaid expenses 5,990 4,000 1,990 Increase Land 54,840 70,560 15,720 Decrease Buildings 199,990 199,990 0 Accumulated depreciationbuildings (21,195 ) (14,130 ) 7,065 Increase Equipment 183,340 68,180 115,160 Increase Accumulated depreciationequipment (27,975 ) (10,080 ) 17,895 Increase Totals $554,200 $376,720 Liabilities and Stockholders' Equity Accounts payable $43,340 $39,900 $3,440 Increase Accrued expenses payable 0 10,030 10,030 Decrease Bonds payable 99,810 150,100 50,290 Decrease Common stock ($1 par) 229,810 60,470 169,340 Increase Retained earnings 181,240 116,220 65,020 Increase Totals $554,200 $376,720 Blossom Company Income Statement For the Year Ended December 31, 2017 Sales revenue $938,000 Cost of goods sold $479,680 Operating expenses 228,860 Interest expense 11,980 Loss on disposal of equipment 2,000 722,520 Income before income taxes 215,480 Income tax expense 64,780 Net income $150,700

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