Presented below is the comparative balance sheet for Cullumber Inc., a private company reporting under ASPE, at December 31, 2021, and 2020: CULLUMBER INC. Balance Sheet December 31 Assets 2021 Cash $58,600 Accounts receivable 101,000 Inventory 205.000 Long-term investment 101.500 Property, plant, and equipment 535,000 Less: Accumulated depreciation (162.5002 5838.600 Liabilities and Shareholders' Equity Accounts payable $57.500 Dividends payable 6.000 Income tax payable 14.000 Long-term notes payable 25.000 Common shares 630.000 Retained earnings 106 100 2020 598.000 75.000 155.500 0 460,000 (140,000 $648,500 $47.000 0 15.000 0 525.000 61.500 -720 $654,600 432.000 222.600 CULLUMBER INC. Income Statement Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses $147,500 Loss on sale of equipment 3.000 Profit from operations Interest expense 3.000 Interest revenue (4.500 Profit before income tax Income tax expense Profit 150,500 72.100 (1,500 73,600 14,000 $59,600 2 Additional information: 1. Cash dividends of $15,000 were declared. A long-term investment was acquired for cash at a cost of $101.500. 3. Depreciation expense is included in the operating expenses. 4. The company issued 10,500 common shares for cash on March 2, 2021. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment, 5. Equipment that originally cost $30,000 was sold during the year for cash. The equipment had a carrying value of $9.000 at the time of sale. 2. 4. Additional information: 1. Cash dividends of $15,000 were declared. A long-term investment was acquired for cash at a cost of $101,500. 3. Depreciation expense is included in the operating expenses. The company issued 10,500 common shares for cash on March 2, 2021. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment Equipment that originally cost $30,000 was sold during the year for cash. The equipment had a carrying value of $9,000 at the time of sale. The company issued a note payable for $28,000 and repaid $3,000 by year end. 7. All purchases of inventory are on credit. Accounts Payable is used only to record purchases of inventory 5. 6. 8. Question 3 of 12 > . S