The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. Net sales Expenses: VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $2,100,000 888,000 30,000 8,300 16,500 51,000 $3,236,000 3,093,800 $ 142,200 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: $ 226,580 84,300 105,000 $169,140 63,000 138,000 12,720 6,360 Investments Land 108,000 0 213,000 246,000 Equipment 276,000 213,000 Accumulated depreciation (72,600) (42,600) Total assets $ 953,000 $792,900 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings $ 68,700 6,300 15,300 $ 84,000 10,600 14,300 291,000 228,000 330,000 330,000 241,700 126,000 Total liabilities and stockholders' equity $ 953,000 $792,900