The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. Net sales Expenses: VIDEO PHONES, INCORPORATED Income Statement For the Year Ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $2,200,000 $3,386,000 908,000 32,000 8,500 17,500 53,000 3,219,000 $ 167,000 VIDEO PHONES, INCORPORATED Balance Sheets December 31 2024 2023 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: $270,300 $185,900 86,500 65,000 105,000 140,000 13,200 6,600 110,000 0 215,000 250,000 280,000 215,000 (75,000) (43,000) $1,005,000 $819,500 $ 70,500 $ 86,000 6,500 11,000 15,500 14,500 295,000 230,000 Common stock 350,000 350,000 Retained earnings 267,500 128,000 Total liabilities and stockholders' equity $1,005,000 $819,500 Additional Information for 2024: 1. Purchased investment in bonds for $110,000. 2. Sold land for $26,500. The land originally was purchased for $35,000, resulting in a $8,500 loss being recorded at the time of the sale. 3. Purchased $65,000 in equipment by issuing a $65,000 long-term note payable to the seller. No cash was exchanged in the transaction. 4. Declared and paid a cash dividend of $27,500.