Trout Corporation Presented below are the balance sheets of Trout Corporation as of December 31 Year I and Year Income Statement and the income statement for the year ended December 31 , Year 2 . The statement of at of retained or the Year Ended December 31 . Year 2 earnings for the year ended December 31 , Year 2 is on the next page All dollars are in thousands . Net sales revenue Trout Corporation Investment revenue Balance Sheets Operating Expenses December 31 . Year I and Year 2 Cost of Goods Year ? Salaries expens Depreciation expen rademark amortization Accounts receivable Bad debts expense ass Allowance for doubtful accounts Insurance expense paid insur Prepaid insurance Bond interest expense Inventor Operating Income Long-term investment Other Income ( Expense ) Buildings and equipment Loss on building for Gain on sale of investments egg : Accumulated depreciation Trademark Pre - Tax Income from Continuing Operations Total Assets SORE Less Income Tax Expense Net Income Liabilities & Stockholders Equity Accounts payable Salaries parable Additional Information Deferred tax liability Lease liability Bonds Parable Shareholders were paid cash dividends of $19 million Less : Discount A building that originally cost $40 million , and which was one fourth depreciated , was Common Stock destroyed by fire . Some undamaged parts were sold for $3 million . Paid In Capital - in excess of par Investment revenue includes Trout Corporation's $7 million share of the net income of Preferred Stock Bass Corporation , an equity method investee Retained Earnings 4 . $30 million par value of common stock was sold for $60 million , and S70 million of Total Liabilities & Stockholders Equity preferred stock was sold at par A long-term investment in bonds originally purchased for $30 million , was sold for $34 million Pretax accounting income exceeded taxable income causing the deferred income tax Liability to increase by $3 million . 7 . The right to use a building was acquired with a seven- year lease agreement present value of lease payments , $90 million Anmal lease payments of $19 million are paid at January of each year starting in Year 2 8 . $150 million of bonds were retired at maturi