The income statement, balance sheets, and additional information for Communication Accessories are provided.

Communication Accessories

Income Statement

For the Year Ended December 31, 2018Revenues$2,800,000Gain on sale of land4,000Total revenues2,804,000Expenses:Cost of goods sold1,900,000Operating expenses575,000Depreciation expense38,000Interest expense16,000Income tax expense63,000Total expenses2,592,000Net Income$212,000Communication Accessories

Balance Sheets

December 31Assets20182017Current Assets:Cash$182,000$187,000Accounts receivable83,00095,000Inventory121,000138,000Prepaid rent7,0005,000Long-Term Assets:Investment in stock195,000100,000Land230,000260,000Equipment305,000225,000Accumulated depreciation(138,000)(100,000)Total Assets$985,000$910,000Liabilities and Stockholders' EquityCurrent Liabilities:Accounts payable$40,000$58,000Interest payable1,0002,000Income tax payable12,00010,000Long-Term Liabilities:Notes payable285,000205,000Stockholders' Equity:Common stock350,000350,000Retained earnings297,000285,000Total Liabilities and Equity$985,000$910,000

Additional Information for 2018:

1. Purchase additional investment in stocks for $95,000.

2. Sell land costing $30,000 for $34,000 resulting in a $4,000 gain on sale of land.

3. Purchase $80,000 in equipment by borrowing $80,000 with a note payable due in three years. No cash is exchanged in the transaction.

4. The company declares and pays a cash dividend of $200,000.