The comparative summary statement of financiat position for Gnat Ltd. as at December 31 follows: 2021 2020 Cash and cash equivalents $ 26,000 $ 90,000 Trade receivables 53,000 62,000 Inventories held for resale 41,000 29.000 Buildings and equipment, net 287,000 240.000 Total $407.000 $421,000 Trade payables $ 16,000 $ 27,000 Bank loan 0 88,000 Interest payable 4,000 2,500 Income taxes payable 5,000 7,000 Contributed capital (common shares) 122,000 100,000 Retained earnings 260.000 196,500 Total $407.000 $421,000 Income statement information for Gnat Ltd. for 2021 is shown below: Sales Cost of sales Operating expenses Operating income Interest expense Gain on sale of equipment Pre-tax earnings Income tax expense Net earnings $ 850,000 580,000 135,000 135,000 5,000 22.000 152.000 64.000 $ 88,000 Additional information 1. A building was acquired for cash during 2021. Also during 2021 equipment with a cost of $73,000 and accumulated depreciation of $15,000 was disposed of in exchange for cash. 2. A $10,000 common stock dividend was declared and issued in 2021. 3. Sales are 80% on credit, and 20% for cash. 4. Trade payables relate only to transactions with suppliers of merchandise inventory 5. The bank loan matures in 2021 and was repaid in full. 6. The income tax rate is 42.1%. 7. Operating expenses include depreciation amounting to $65,000 au 2240 Cash proceeds from the issuance of common shares in 2021 was Select O. 22.000 0.532.000 512.000 Od 585.500 NO 23.40 Interest paid in 2021 was Select one O $5,000 O $3.500 O c. $8.500 d. $1.500 Notes unsure 24.140 Income taxes paid in 2021 was Select one O a. 554.000 b. 566.000 O c 562.000 Od $68,000 Notes Unsure 25.40 The change in current assets in 2021 was Select one a. Decrease of $65.000 b. Increase of $2,000 O c Decrease of $2,000 Od Increase of $13,000