The following balance sheet for the Hubbard Corporation was prepared by the company:

Additional Information:1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $50,000 but, due to a significant increase in market value, is listed at $120,000. The increase in the land account was credited to retained earnings.2. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $20,000 of which will be sold in the coming year. The remainder will be held indefinitely.3. Notes payable are all long term. However, a $100,000 note requires an installment payment of $25,000 due in the coming year.4. Inventory is recorded at current resale value. The original cost of the inventory is $160,000.

Required:Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2021. Include headings for each classification, as well as titles for each classification?s subtotal. An example of a classified balance sheet can be found in the Concept Review Exercise at the end of Part A of this chapter.

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HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets $ 750,000 Buildings Land 250,000 60,000 Cash Accounts receivable (net) Inventory Machinery 120,000 240,000 280,000 Patent (net) 100,000 Investment in equity securities 60,000 $1,860,000 Total assets Liabilities and Shareholders' Equity $ 215,000 Accounts payable Accumulated depreciation Notes payable 255,000 500,000 Appreciation of inventory Common stock (authorized and issued 100,000 shares of no par stock) Retained earnings 80,000 430,000 380,000 Total liabilities and shareholders' equity $1,860,000