The comparative balance sheets for $2024$ and $2023$ and the income statement for $2024$ are given below for Arduous Company. Additional information from Arduous$$s accounting records is provided also.

ARDUOUS COMPANY

Comparative Balance Sheets

December $31,2024$ and $2023$

$($$ in millions$)$

$20242023$

Assets

Cash $ $335$ $ $101$

Accounts receivable $210214$

Investment revenue receivable $2624$

Inventory $225220$

Prepaid insurance $2428$

Long$-$term investment $156125$

Land $216170$

Buildings and equipment $514420$

Less: Accumulated depreciation $(117)(140)$

Patent $6971$

$ $1,658$ $ $1,233$

Liabilities

Accounts payable $ $70$ $ $105$

Salaries payable $2631$

Interest payable $($bonds$)2824$

Income tax payable $3234$

Deferred tax liability $3128$

Notes payable $230$

Lease liability $1570$

Bonds payable $235295$

Less: Discount on bonds $(23)(26)$

Shareholders$$ Equity

Common stock $430410$

Paid$-$in capital$$excess of par $157145$

Preferred stock $950$

Retained earnings $406187$

Less: Treasury stock $(9)0$

$ $1,658$ $ $1,233$

ARDUOUS COMPANY

Income Statement

For Year Ended December $31,2024$

$($$ in millions$)$

Revenues and gain:

Sales revenue $ $725$

Investment revenue $71$

Gain on sale of treasury bills $2$ $ $798$

Expenses and loss:

Cost of goods sold $200$

Salaries expense $93$

Depreciation expense $12$

Amortization expense $2$

Insurance expense $27$

Interest expense $48$

Loss on sale of equipment $22$

Income tax expense $56460$

Net income $ $338$

Additional information from the accounting records:

Investment revenue includes Arduous Company$$s $$6$ million share of the net income of Demur Company, an equity method investee.

Treasury bills were sold during $2024$ at a gain of $$2$ million. Arduous Company classifies its investments in Treasury bills as cash equivalents.

Equipment originally costing $$70$ million that was one$-$half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $$13$ million.

Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $$3$ million.

The preferred stock of Tory Corporation was purchased for $$25$ million as a long$-$term investment.

Land costing $$46$ million was acquired by issuing $$23$ million cash and a $15\%,$ four$-$year, $$23$ million note payable to the seller.

The right to use a building was acquired with a $15-$year lease agreement; present value of lease payments, $$164$ million. Annual lease payments of $$7$ million are paid at the beginning of each year starting January $1,2024.$

$$60$ million of bonds were retired at maturity.

In February, Arduous issued a stock dividend $(4$ million shares$).$ The market price of the $$5$ par value common stock was $$8$ per share at that time.

In April, $1$ million shares of common stock were repurchased as treasury stock at a cost of $$9$ million.

Problem $21-21($Algo$)$ Part $1$

Required:

$1.$ Prepare the T$-$accounts for Arduous Company.

Note: Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$ Amounts to be deducted should be indicated with a minus sign.$)$