Delta Corporation showed the following adjusted trial balance at its year-end, December 31, 2014:

Delta Corporation

Adjusted Trial Balance

December 31, 2014

(000s)

Account............................Balance

Accounts payable .................................................................................................... 96

Accounts receivable ................................................................................................ 71

Accumulated depreciation—equipment .................................................................. 76

Allowance for doubtful accounts............................................................................. 8

Cash....................................................................................................................... 70

Cash dividends........................................................................................................ 40

Common shares ...................................................................................................... 100

Cost of goods sold.................................................................................................. 395

Earnings from investment in Tildon Inc.................................................................. 40

Equipment.............................................................................................................. 101

Fees earned ............................................................................................................. 160

Income taxes payable .............................................................................................. 7

Income tax expense ................................................................................................ 52

Interest expense ...................................................................................................... 5

Investment income ................................................................................................. 134

Investment in Tildon Inc. shares............................................................................. 238

Long-term Investment—Delta Inc. bonds, due 2024............................................... 56

Merchandise inventory............................................................................................ 28

Notes payable, due March 2019............................................................................. 74

Operating expenses ................................................................................................ 218

Preferred shares ....................................................................................................... 44

Prepaid rent ............................................................................................................ 6

Retained earnings.................................................................................................... 82

Sales....................................................................................................................... 460

Short-term investment—Cornerstone Inc. shares..................................................... 15

Unearned fees ......................................................................................................... 12

Unrealized holding gains3 ....................................................................................... 2

Required

Using the information provided, prepare a single-step income statement and a classified balance sheet, in thousands.

Analysis Component: Explain the impact on the financial statements if a non-strategic equity investment was listed instead as a strategic equity investment.