#2. Balance sheet. Ignore #1. Proper form of balance sheet is attached.

The companies' financial statements for the year ending December 31, 2015, follow: Sea-Breeze Nascent (600,000) (300,000) Revenues 210,000 410,000 Operating expenses (42,000) Investment income (90,000) (232,000) Net income $(700,000) (300,000) Retained earnings, 1/1/15 (90,000) (232,000) Net income 70,000 92,000 Dividends declared (840,000) (320,000) Retained earnings, 12/31/15 330,000 100,000 Current assets 200,000 220,000 Land 200,000 700,000 Buildings (net) 400,000 500,000 Equipment (net) 414,000 Investment in Sea-Breeze 1,000,000 2,064,000 Total assets (500,000) (200,000) Liabilities (724,000) (480,000) Common stock (840,000) (320,000) Retained earnings, 12/31/15 $(2,064,000) $(1,000,000) Total liabilities and equities