For the following financial events in the start-up phase of the business:

1.For the land contributed to the business, they received three million shares of 1$ par value stock in the corporation.

2.Fees for attorneys, incorporation costs and corporate officer's salaries during the star-up phase amounted to $100,000.

3.They opted for a fixed-rate at 8% per year and agree to pay the 3 million loan in equal annual installments over 10 years.

4.Distribution terminals required investments in plant of $1,500,000. Distribution truck required an investment of $600,000.

5.They purchased 500,000 gallons of propane at $.60 per gallon.

6.The entrepreneurs agreed that they be members of the board of directors.

With the information available to them about start-up activities, they produce the attached balance sheet.

BALANCE SHEET m CASH S 500,000 INVENTORY 300,000 EQUIPMENT 600,000 PLANT 1,500,000 ASSETS LAND 3,000,000 START-UP COSTS 100'000 TOTAL ASSETS $6,000,000 LIABILITIES NOTES PAYABLE S3,000, 000 EQUITY STOCK 3,000,000 RETAINED EARNINGS