Exercise 12-11 Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Oriole Galleries. The balance sheet of Oriole is given in an abbreviated form below ORIOLE GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2017 Assets $104,000 69,900 199,900 Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) $50,300 303,000 353,300 Cash Land Buildings (net) Equipment (net)174,900Common stock Copyrights (net) Total assets Total liabilities $241,300 29,900 16,000 225,300 $578,600 Retained earnings $578,600 Total liabilities and stockholders' equity Moss and Oriole agree that: 1. Land is undervalued by $30,700 2. Equipment is overvalued by $5,000 Oriole agrees to sell the gallery to Moss for $380,400