P23.1

(LO 2, 4 ) (SCFIndirect Method) The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

Comparative Balance Sheets
			Increase
	2020	2019	(Decrease)
Cash	$815,000	$700,000	$115,000
Accounts receivable	1,128,000	1,168,000	(40,000)
Inventory	1,850,000	1,715,000	135,000
Property, plant, and equipment	3,307,000	2,967,000	340,000
Accumulated depreciation	(1,165,000)	(1,040,000)	(125,000)
Investment in Myers Co.	310,000	275,000	35,000
Loan receivable	250,000		250,000
Total assets	$6,495,000	$5,785,000	$710,000
Accounts payable	$1,015,000	$955,000	$60,000
Income taxes payable	30,000	50,000	(20,000)
Dividends payable	80,000	100,000	(20,000)
Lease liability	400,000		400,000
Common stock, $1 par	500,000	500,000
Paid-in capital in excess of parcommon stock	1,500,000	1,500,000
Retained earnings	2,970,000	2,680,000	290,000
Total liabilities and stockholders' equity	$6,495,000	$5,785,000	$710,000

Additional information:

• 1.On December 31, 2019, Sullivan acquired 25% of Myers Co.'s common stock for $275,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2020. No dividend was paid on Myers's common stock during the year.
• 2.During 2020, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31, 2020.
• 3.On January 2, 2020, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash.
• 4.On December 31, 2020, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2021.
• 5.Net income for 2020 was $370,000.
• 6.Sullivan declared and paid the following cash dividends for 2020 and 2019.

  	2020	2019
  Declared	December 15, 2020	December 15, 2019
  Paid	February 28, 2021	February 28, 2020
  Amount	$80,000	$100,000

Instructions

Please identify the major note disclosure requirements per ASC Accounting Standards for a Statement of Cash Flow for this problem.