The following changes took place last yearin Pavolik Company's balance sheet accounts: Liabiites and Equity Accounts Asset and Contra Asset Aocounts 30 D Accounts payable 92 34 I Accrued liabilities 78 D Income taxes payable Inventory 284 Prepaid expenses S 29 Bonds payable 136 D 31 D Common stock Long-term investments s 112 Property, plant, and equipment 545 Retained earnings Accumulated depreciation 112 D Decrease; I Increase. had cost S65 was sold for $34. In addition, the oompany declared and paid $28 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. Pavolk did not retire any bonds during the year or issue any new common stock. The company's income statement for the year follows $1.320 Cost of goods sold 734 Gross margin Selling and administrative expenses 214 Net operating income Nonoperating items S (31) Loss on sale of land Gain on sale of investment 218 income before taxes s 140