Comparative Balance Sheets Increase 2025 2024 (Decrease) Cash $812.300 $694,700 $117,600 Accounts receivable 1,123,700 1,172,300 (48,600) Inventory 1,850,100 1,716,300 133,800 Property, plant, and equipment 3,298,900 2,970,600 328,300 Accumulated depreciation (1,175,800) (1,034,000) (141,800) Investment in Myers Co. 308,800 275,100 33,700 Loan receivable 251,300 251,300 Total assets $6,469,300 $5,795,000 $674,300 Accounts payable $1,006,500 $963,000 $43,500 Income taxes payable 29.900 50,000 (20,100) Dividends payable 80,800 100,500 (19,700) Lease liability 387,800 387,800 Common stock, $1 par 500,000 500,000 Paid-in capital in excess of par-common stock 1,498,200 1,498,200 Retained earnings 2.966.100 2,683,300 282.800 Total liabilities and stockholders' equity $6,469,300 $5,795,000 $674,300 1 2 3 4. On December 31, 2024, Headland acquired 25% of Myers Co's common stock for $275,100. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,400. Myers reported income of $134,800 for the year ended December 31, 2025. No dividend was paid on Myers's common stock during the year. During 2025, Headland loaned $288,300 to TLC Co, an unrelated company. TLC made the first semiannual principal repayment of $37,000, plus interest at 10%, on December 31, 2025. On January 2, 2025, Headland sold equipment costing $59.500, with a carrying amount of $38,000, for $40,000 cash On December 31, 2025, Headland entered into a capital lease for an office building. The present value of the annual rental payments is $387,800, which equals the fair value of the building. Headland made the first rental payment of $60,600 when due on January 2, 2026 5. Net income for 2025 was $363,600. 6. Headland declared and paid the following cash dividends for 2025 and 2024. 2025 2024 Declared Paid December 15, 2025 February 28, 2026 December 15, 2024 February 28, 2025 Amount $80,800 $100.500