• Fellingham Software Company has assets of $850,000 and liabilities of $460,000. a. Prepare the owners’ equity section of the company’s balance sheet under each of the following independent assumptions: The business is organized as a sole proprietorship, owned by Johanna Small. The business is organized as a partnership, owned by Johanna Small and Mikki Yato.Small’s equity amounts to $240,000. The business is a corporation with 25 stockholders, each of whom originally invested $10,000 in exchange for shares of the company’s capital stock. The remainder of the stockholders’ equity has resulted from profitable operation of the business. b. Assume that you are a loan officer at Security Bank. Fellingham has applied to your bank for a large loan to finance the development of new products. Does it matter to you whether Fellingham is organized as a sole proprietorship, partnership, or a corporation? Explain.