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Grandpa Clocks, Incorporated (GCI), is a retailer of wall, mantle, and grandfather clocks. Assume GCI sells a grandfather clock for $12,000 cash plus 3 percent sales tax. The clock had originally cost GCI $8,000. Assume GCI uses a perpetual inventory system.

1. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign.