Presented below is the balance sheet of Carla Corporation as

Presented below is the balance sheet of Carla Corporation as of December 31, 2017. CARLA CORPORATION BALANCE SHEET DECEMBER 31, 2017 Assets Goodwill (Note 2) Buildings (Note 1) Inventory Land Accounts receivable Treasury stock (50,000 shares) Cash on hand Assets allocated to trustee for plant expansion 121,610 1,640,000 313,710 950,000 171,610 88,610 177,510 71,610 139,610 $3,674,270 Cash in bank Debt investments (held-to-maturity Equities Notes payable (Note 3) Common stock, authorized and issued, 1,000,000 shares, no par Retained earnings Noncontrolling interest Appreciation capital (Note 1) Income tax payable Reserve for depreciation recorded to date on the building 601,610 1,151,610 804,610 56,610 571,610 76,610 411,610 $3,674,270 . The Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value excess of appraisal value over cost was $571,610. Depreciation has been recorded based on cost. Note 2: Goodwill in the amount of $121,610 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $121,610 was credited to Retained Earnings. Note 3: Notes payable are long-term except for the current instalilment due of $100,000

Solution

BALANCE SHEET 31-Dec-17 Assets Current Assets Cash 177,510 Accounts Receivable 171,610 Inventory 313,710 Total current Assets 662,830 Long term Investments Assets allocated to trustee for plant expansion   Cash in bank 71,610   Debt investments (held-to-maturity) 139610 211,220 Property Plant & equipment Land 950,000 Building (1640000-571610) 1068390 Less: Accumulated depreciation-Building 411610 656780 1,606,780 Total assets 2,480,830 Liabilities & Stockholder Equity Current Liabilities Notes payable-Current Installment $100,000 Income tax payable 76610 Total Current Liabilities $176,610 Long term Liabilities Notes payable (601610-100000) 501610 Total Liabilities $678,220 Stockholder Equity Common stock, authorize d and issued, 1,000,000 shares, no par 950000 shares outstanding ( 1151610 Retained Earnings (804610-121610) 683000 1834610 Less: Treasury stock -88610 Controlling stockholder Equity 1746000 Noncontrolling interest 56610 Total stockholder Equity 1802610 Total Liabilities & Stockholder Equity $2,480,830 If any doubt please comment. If satisfiied you can rate