The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2018 Net sales Expenses: S 3,536,000 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $ 2,350,000 938,000 35,000 8,800 19,000 56,000 Total expenses 3,406,800 Net income 129,200 VIDEO PHONES, INC. Balance Sheets December 31 2018 2017 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent $ 260,880 $ 211,040 68,000 143,000 6,960 89,800 105,000 13,920 Long-term assets: Investments Land Equipment Accumulated depreciation 113,000 218,000 286,000 (78,600) 256,000 218,000 (43,600) Total assets $ 1,008,000 S 859,400 Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable 73,200 S 89,000 11,600 14,800 6,800 15,800 301,000 380,000 Long-term liabilities: Notes payable 233,000 Stockholders' equity: Common stock Retained earnings 380,000 131,000 231,200 Total liabilities and stockholders' equity $ 1,008,000 S 859,400 Additional Information for 2018: 1. Purchase investment in bonds for $113,000 2. Sell land costing $38,000 for only $29,200, resulting in a $8,800 loss on sale of land 3. Purchase $68,000 in equipment by borrowing $68,000 with a note payable due in three years. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $29,000