The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided.

VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021
Net sales					$	2,550,000
Gain on sale of land						4,500
Total revenues						2,554,500
Expenses:
Cost of goods sold	$	1,625,000
Operating expenses		610,000
Depreciation expense		28,000
Interest expense		29,000
Income tax expense		75,000
Total expenses						2,367,000
Net income					$	187,500

VIRTUAL GAMING SYSTEMS Balance Sheets December 31
	2021				2020
Assets
Current assets:
Cash	$	289,400			$	228,900
Accounts receivable		69,500				85,000
Inventory		152,500				140,000
Prepaid rent		4,300				6,600
Long-term assets:
Investments		210,000				120,000
Land		212,500				265,000
Equipment		240,000				215,000
Accumulated depreciation		(135,500	)			(107,500	)
Total assets	$	1,042,700			$	953,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	32,500			$	93,000
Interest payable		4,700				3,500
Income tax payable		23,000				26,500
Long-term liabilities:
Notes payable		255,000				230,000
Stockholders' equity:
Common stock		405,000				350,000
Retained earnings		322,500				250,000
Total liabilities and stockholders equity	$	1,042,700			$	953,000

Additional Information for 2021:

1. Purchase additional investment in stocks for $90,000.

2. Sell land costing $52,500 for $57,000, resulting in a $4,500 gain on sale of land.

3. Purchase $25,000 in equipment by issuing a $25,000 long-term note payable to the seller. No cash is exchanged in the transaction.

4. Declare and pay a cash dividend of $115,000.

5. Issue common stock for $55,000