Blossom Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,200,000 Discontinued operations loss (net of tax) 52,500 Selling expenses 125,000 Cash 58,000 Accounts receivable 88,000 Common stock 200,000 Cost of goods sold 695,000 Accumulated depreciation-machinery 176,000 Dividend revenue 7,000 Unearned service revenue 4,000 Interest payable 1,000 Land 360,000 Patents 100,000 Retained earnings, January 1, 2020 271,500 Interest expense 17,000 Administrative expenses 165,000 Dividends declared 22,000 Allowance for doubtful accounts 4,500 Notes payable (maturity 7/1/23) 180.000 Machinery 440.000 Materials 38,000 Accounts payable 55,000 The amount of income taxes applicable to income was $61,500, excluding the tax effect of the discontinued operations loss which amounted to $22,500. Blossom Corporation INCOME STATEMENT For the Year Ended December 31, 2020 Sales Revenue $ 1,200,000 Cost of Goods Sold 695,000 Gross Profit/(Loss) > 505,000 Operating Expenses $ 165,000 Selling Expenses > 125000 Total Operating Expenses > 290,000 Income from Operations > 215000 Other Revenue and Expense 7000 Interest Expense