Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Cullumber Galleries. The balance sheet of Cullumber is given in an abbreviated form below.

CULLUMBER GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2017
Assets				Liabilities and Stockholders Equity
Cash		$113,000		Accounts payable				$51,100
Land		70,800		Notes payable (long-term)				303,000
Buildings (net)		200,800		Total liabilities				354,100
Equipment (net)		175,800		Common stock		$235,300
Copyrights (net)		30,800		Retained earnings		1,800		237,100
Total assets		$591,200		Total liabilities and stockholders equity				$591,200

Moss and Cullumber agree that:

1.		Land is undervalued by $47,000.
2.		Equipment is overvalued by $5,300.

Cullumber agrees to sell the gallery to Moss for $381,300