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5 value 10.00 points 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 $ 2,696,000 Net sales Expenses Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $1,650,000 798,000 21,000 7,400 12,000 42,000 Total expenses 2,530,400 Net income $165,600 VIDEO PHONES, INC Balance Sheet December 31 2018 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent S 166,040 94,320 54,000 129,000 4,680 74,400 105,000 9,360 Long-term assets Investments Land Equipment Accumulated depreciation 99,000 204,000 258,000 228,000 (61,800)204,000 (40,800) Total assets $854,000$ 673,200 Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable 60,600$75,000 8,800 13,400 5,400 Income tax payable Long-term liabilities Notes payable Stockholders' equity: Common stock 14,400 273,000 240,000 219,000 240,000 117,000 Retained earnings 260,600 Total liabilities and stockholders equty $ 854,000 S 673,200 Additional Information for 2018: 1. Purchase investment in bonds for $99,000 2. Sell land costing $24,000 for only $16,600, resulting in a $7,400 loss on sale of land. 3. Pur chase $54,000 in equipment by borrowing $54,000 with a note payable due in three years. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $22,000

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