The balance sheet of Kishwaukee Corporation as of December 31, 2020, is as follows.

Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $570,000. Depreciation has been recorded based on cost.

Note 2: Goodwill in the amount of $120,000 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $120,000 was credited to Retained Earnings.

Note 3: Notes payable are long-term except for the current installment due of $100,000.

Instructions

Prepare a corrected classified balance sheet in good form. The notes above are for information only.

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Kishwaukee Corporation Balance Sheet December 31, 2020 Assets $ 120,000 Goodwill (Note 2) Buildings (Note 1) Inventory 1,640,000 312,100 Land 950,000 170,000 Accounts receivable Treasury stock (50,000 shares) 87,000 Cash on hand 175,900 Assets allocated to trustee for plant expansion Cash in bank 70,000 Debt investments (held-to-maturity) 138,000 $3,663,000 Equities $ 600,000 Notes payable (Note 3) Common stock, authorized and issued, 1,000,000 shares, no par Retained earnings Noncontrolling interest Appreciation capital (Note 1) Income taxes payable Reserve for depreciation recorded to date on the building 1,150,000 803,000 55,000 570,000 75,000 410,000 $3,663,000