Following are accounts and balances, in random order, from the adjusted trial balance of Deck Corp. at December 31. Debits equal credits, all amounts are correct, all accounts have normal balances, and a perpetual FIFO inventory system is used.

B) Prepare a classified balance sheet.

Work in process inventory	$46,400	Petty cash		$640
Interest receivable	3,520	Preferred stock, $100 par, authorized 5,000 shares		96,000
Common stock, nopar, authorized 100,000 shares, issued 40,000	240,000	Deferred revenue		1440
Cash	48,000	Finished goods inventory		68,800
Trademarks (net)	2,240	Note receivable (short term)		6,400
Land held for speculation	43,200	Bonds payable, 6% (due in 6 years)		80,000
Supplies inventory	960	Accounts payable (trade)		27,200
Goodwill	28,800	Allowance for doubtful accounts		2,240
Raw materials inventory	20,800	Notes payable (short term)		11,520
Bond sinking fund	16,000	Office equipment		40,000
Accrued property taxes	2,240	Land (used as building site)		12,800
Accounts receivable (trade)	46,400	Shortterm investments (at market)		24,800
Salaries payable	3,360	Retained earnings, December 31, prior year		37,120
Mortgage payable (due in three years)	16,000	Dividends (declared and paid in cash on common stock)		32,000
Building	208,000	Revenues		800,000
Prepaid expense	3,040	Cost of goods sold		480,000
Equipment held for sale	12,480	Expenses (including income taxes)		160,000
Deposits (cash collected from customers on sales orders		Income taxes payable		64,000
to be delivered next quarter; no revenue yet recognized)	1,600	Interest payable		1,600
Longterm investment in bonds of		Accumulated depreciation, office equipment		2,560
Kaline Corp. (at cost, to be held to maturity)	80,000	Accumulated depreciation, building		8,000
Patents, net	22,400
Paid in capital in excess of par Preferred stock	12,800

c. Assume that between December 31 and issuance of the financial statements, a flood damaged the finished goods inventory in an amount estimated to be $32,000. This event has not been (and should not have been) recognized in the current year statements. However, disclosure in the current year's statements is required. Prepare the necessary disclosure.

Note A: On (date), a severe flood damaged the _____ in an amount estimated to be $____.