Assets Buildings (net) Equipment (net) Copyrights (net) Land Cash Total assets Blossom Gallaries Statement of Financial Position As of December 31, 2022 Liabilities and Stockholders' Equity Share capital-ordinary Retained earnings Accounts payable 70,600 Long-term notes payable 2. $200,600 175,600 30,600 111,000 $588,400 Graf and Blossom agree that: Total liabilities Total equity and liabilities 1. Land is undervalued by $30,000. Equipment is overvalued by $5,000. Blossom agrees to sell the gallery to Graf for $350,000. $206,600 29,800 50,800 301,200 $236,400 352,000 $588,400

Graf and Blossom agree that: 1. Land is undervalued by $30,000. 2. Equipment is overvalued by $5,000. Blossom agrees to sell the gallery to Graf for $350,000. Account Titles and Explanation Debit Credit