Additional information (no accounting errors are involved): a. Merchandise inventory is based on FIFO, lower of cost or net realizable value. b. The patent is subjected to an annual impairment test. The impairment for 205 has already been recorded. c. Operating expenses as given include depreciation and interest expense, and revenues include interest and investment revenues. d. The "cash advance from customer" was for a special order that will not be completed and shipped until March 20X6; the sales price has not been definitely established because it is to be based on cost (no revenue should be recognized for 205 ). Amana Cement Corporation is a private corporation controlled by Ami related data at 31 December 205 are given below. Although the com 1. A Dranarn the halanen ehant 31 December 205 Cash Land (used for building site) Cost of goods sold Short-term securities, at market (cost, $32,000 ) Investment in U.S. subsidiary Goodwill Merchandise inventory office supplies inventory Patent Operating expenses Income tax expense Impairment of patent Prepaid insurance Building (at cost) Land (held for speculation) Translation loss on U.S. subsidiary, 31 December 20X4 Accrued interest receivable Accounts receivable (trade) Note receivable, 10% (long-term investment) Subscriber lists (net) Prepayments to pension fund in advance of expensing (long-term) Dividends declared in 20X5, payable in 20X6 Correction of error from prior year-no income tax effect Credit Balance Accounts Reserve for bad debts Accounts payable (trade) Revenues 205 translation gain on U.S. subsidiary Deferred income tax Note payable (short term) Common shares, no par, 10,000 shares outstanding Reserve for depreciation, building Retained earnings, 1 January 205 Gain on new accounting policy Accrued wages Cash advance from customer Accrued property taxes Note payable (long term) Rent revenue collected in advance Bonds payable, 11%($16,000 due 1 June 20x6) $32,900 109,800 127,700 35,700 85,100 102,300 24,700 1,700 6,000 47,100 15,000 6,600 720 120,100 60,200 9,600 440 33,100 43,600 31,800 37,600 22, 000 22,000 $975,760 1,00013,800253,10011,60036,8009,200130,30068,800247,76031,4001,6002,40070014,0001,300152,000$975,760