The following are Sullivan Corps comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020. COMPARATIVE BALANCE SHEETS 2020 Increase (Decrease) 2019 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 3,307,000 2,967,000 340,000 (1,165,000) (1,040,000) (125,000) Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable Total assets 310,000 275,000 35,000 250,000 250,000 $6,495,000 $5,785,000 $710,000 $1,015,000 $955,000 $60,000 Accounts payable Income taxes payable 30,000 50,000 (20,000) Dividends payable 80,000 100,000 (20,000) 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 liabililty 400,000 400,000 Common stock, $1 par 500,000 500,000 Paid-in capital in excess of par-common 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. 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 SULLIVAN CORP. Statement of Cash Flows $ Adjustments to reconcile net income to $ > c
