Assume the company sold its net assets on January 1, 2019 for $10,000,000. FMV of equipment was $2.2 million. Financial value reported for remaining assets and liabilities - their FMVs. Using the attached templete Calculate the gain or loss on each asset sold and the shareholder gain due to the liquidation. Tax Rate -21%. Shareholder's basis in stock - $100,000. Keurig, Inc. Balance Sheets Assets December 31 2018 2017 Current assets: Cash and cash equivalents $3,863,962 $2,856,939 Accounts receivable, net of allowances of $207,888 5,397,455 4,437,314 in 2018 and $113,000 and 2017 Inventories (FIFO) Prepaid expenses and other assets Total current assets Equipment, net of accumulated depreciation and amortization 2,240,703 1,584,909 12,088,113 585,993 345,111 9,224,273 2,605,816 5,225,592 84,874 84.441 283,616 330,464 Restricted cash Other assets, principally equipment deposits $15,062,419 $14,864,770 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses Current portion of capital lease obligations $6,328,632 $4,292,940 39,269 6,328,632 4,332,209 Total current liabilities Equipment Equipment is stated at cost and consists of the following at December 31: Production equipment Office equipment Packaging equipment in progress 2018 2017 $5,045,906 $5,978,383 195,406 171,502 365,052 1,982,850 5,606,364 8,132,735 Less accumulated depreciation and amortization (3,000,548) (2,907,143) $2,605,816 $5,225,592 Depreciation and amortization of equipment is principally calculated using the straight-line method over three to seven years, which is the estimated useful life of the related equipment. Depreciation expense amounted to $1,409,528, $1,019,742 and $1,061,205 in 2018, 2017 and 2016, respectively. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: Accounts payable Accrued compensation Accrued warranty costs 2018 2017 $3,092,527 $2,262,083 1,606,606 1,339,642 242,371 162,325 Deferred royalties and deposits 952,532 348,273 Other 434,596 180,617 $6,328,632 $4,292,940 B. Income Taxes Deferred tax assets and liabilities are determined based on the differences between financial and tax reporting. Deferred taxes are attributable to the following temporary differences: Deferred tax liability: Equipment Deferred tax assets: 2018 December 31 2017 $(193,800) $ (169,244) Allowance for doubtful accounts Accrued expenses and allowances 43,656 23,730 63,600 83,700