The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Liabilities and Stockholders' Equity Accounts $ 26 D Accounts payable. Inventory Accounts receivable Prepaid expenses $ 30 I Accrued liabilities $ 70 D Income taxes payable $ 25 I Bonds payable Long-term investments $ 27 D Common stock Property, plant, and equipment $ 485 I Retained earnings $ 100 I $ 80 I $ 30 D $ 35 I $ 252 I $ 120 0 $ 100 I es Accumulated depreciation D= Decrease; I Increase. Long-term investments that cost the company $27 were sold during the year for $58 and land that cost $57 was sold for $30. In addition, the company declared and paid $24 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock. The company's income statement for the year follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating incone Nonoperating items: $ 1,200 530 670 480 190 Loss on sale of land Gain on sale of investments Income before taxes: Income taxes: $(27) 31 1941 70