The comparative balance sheet of Posner Company, for 2021 and the preceding year ended December 31, 2020, appears below in condensed form: Year Year 2021 2020 Cash P 53,000 P 50.000 Accounts receivable (net) 37,000 48.000 Inventories 108.500 100,000 Investments 70.000 Equipment 573.200 450.000 Accumulated depreciation-equipment (142 000) (176.000) P629.700 P542,000 Accounts payable P 62.500 P 43,800 Bonds payable, due 2021 100,000 Common stock, P10 par 325,000 285.000 Paid-in capital in excess of par-- common stock 80.000 55.000 Retained earnings 162 200 58 200 P629,700 P542.000 The income statement for the current year is as follows: Sales P625.700 Cost of merchandise sold 340.000 Gross profit P285,700 Operating expenses. Depreciation expense P26,000 Other operating expenses 68,000 94,000 Income from operations P191.700 Other income: Gain on sale of investment P 4,000 Other expense: Interest expense 6,000 _(2 000) Income before income tax P189.700 Income tax 60,700 Net income P129.000 Additional data for the current year are as follows: (a) Fully depreciated equipment costing P60,000 was scrapped, no salvage, and equipment was purchased for P183,200. (b) Bonds payable for P100,000 were retired by payment at their face amount. (c) 5,000 shares of common stock were issued at P13 for cash. (d) Cash dividends declared and paid, P25,000