The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows: 1 Dec. 31, 20Y3 Dec. 31, 20Y2 2 Assets 3 Cash $625,650.00 $586,340.00 4 Accounts receivable (net) 228,170.00 208,030.00 5 Inventories 641,480.00 617,130.00 6 Investments 0.00 240,290.00 7 Land 328,170.00 0.00 8 Equipment 706,070.00 552,300.00 9 Accumulated depreciation-equipment (165,580.00) (147,010.00) 10 Total assets $2,363,960.00 $2,057,080.00 11 Liabilities and Stockholders Equity 12 Accounts payable (merchandise creditors) $424,300.00 $404,860.00 13 Accrued expenses payable (operating expenses) 41,850.00 52,880.00 14 Dividends payable 23,200.00 19,880.00 15 Common stock, $2 par 150,000.00 100,000.00 16 Paid-in capital: Excess of issue price over parcommon stock 417,500.00 280,000.00 17 Retained earnings 1,307,110.00 1,199,460.00 18 Total liabilities and stockholders equity $2,363,960.00 $2,057,080.00 The income statement for the year ended December 31, 20Y3, is as follows: 1 Sales $5,378,129.00 2 Cost of goods sold 3,306,510.00 3 Gross profit $2,071,619.00 4 Operating expenses: 5 Depreciation expense $18,570.00 6 Other operating expenses 1,755,879.00 7 Total operating expenses 1,774,449.00 8 Operating income $297,170.00 9 Other income: 10 Gain on sale of investments 40,390.00 11 Income before income tax $337,560.00 12 Income tax expense 133,650.00 13 Net income $203,910.00 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $280,680 cash. b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $96,260 debit to Retained Earnings for cash dividends declared.