-1 Preparing a Balance Sheet and Analyzing Some of Its Parts (P5-3) -3 TangoCo is developing its annual financial statements for the current year. The following amounts were correct at December 31, current year: cash, $48,800; investment in stock of PIL Corporation (longterm), $36,400; store equipment, $67,200; accounts receivable, $71,820; inventory, $154,000; prepaid rent, $1,120; used store equipment held for disposal, $9,800; accumulated depreciation, store equipment, $13,440; income taxes payable, $9,800; long-term note payable, $32,000; accounts payable, $58.800; retained earnings, \$165,100; and common stock, 100,000 shares outstanding, par value \$1 per share (originally sold and issued at $1.10 per share). Required: 1. Based on these data, prepare a December 31, current year, balance sheet. Use the foliowing major captions (list the individual items under these captions): a. Assets: Current Assets and Noncurrent Assets. b. Liabilities: Current Liabilities and Long-Term Liabilities. c. Stockholders' Equity: Contributed Capital and Retained Earnings. 2. What is the net book value of the store equipment? Explain what this value means