The income statement, balance sheet, and additional information for video phones, Inc., are provided.

additional information for 2021:

1) purchase investment in bonds for $100,000.

2) Sell land costing $25,000 for only 17,500 resulting in a 7000 and $500 loss on sale of land.

3)Purchase $55,000 in equipment by issuing a $55,000 long-term note payable to the seller. No cash is exchanged in this transaction.

4) Declare and pay in cash and evening of 22,500.

$2,756,000 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses : Cost of goods sold $1,700,000 Operating expenses 808,000 Depreciation expense 22,000 Loss on sale of land 7,500 Interest expense 12,500 Income tax expense 43,000 Total expenses Net income 2,593,000 $ 163,000 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 $ 172,900 75,500 105,000 9.600 $102,700 55,000 130, eee 4.800 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 100,000 205,000 260,000 (63,000) $ 865,000 230,000 205,000 (41,089) $686,500 $ 61,500 5,500 14,500 $ 76,000 9,000 13,500 275,000 220,000 250,000 258,500 $865 , 250,000 118,000 $686,500