Alex MacDonald was saddened when he heard of the death of his uncle, but was shocked when he heard that he had inherited a 1,000 acre farm, Ullapool Pasture, located in the Scottish highlands. The ranch currently had a house, outbuildings for help, and a barn. The inheritance also included 500 head of sheep. When Alex arrived in Scotland to check on his inheritance, he found the buildings and ences in need of repair. The manager of the farm greete Alex with a handshake and the financial statements from the end of the most recent fiscal year, which was about three months ago. The accounting report included only a balance sheet and an income statement: Ullapool Pasture Balance Sheet December 31, 2015 Liabilities Assets Cash Equipment Buildings Accumulated depreciation (52,000 Total assets 2,000 Mortgage 200,000 100,000 84,000 Owner's equity Owner's share 34,000 234,000abilities and equities S234,000 Ullapool Pasture Profit and Loss Statement for 2015 Sale of sheep Cost of supplies Manager's salary 50,000 (10,000) (15,000) (10,000) (20,000 (5,000 Interest on mortgage Net loss