Group Assignment #2 (35 marks) The statement of financial position of Basilica Corp. at December 31, 2020 was prepared as follows: Basilica Corp. Statement of Financial Position December 31, 2020 Current Liabilities Long-term Liabilities Shareholders' Equity $ 237,500 437,500 494,800 Cash Accounts Receivable (net) Inventories Investments Land Building (net) Copyright (net) $ 40,250 (1) 85,550 (2) 105,000 (3) 60,000 (4) 350,000 (5) 525,000 (6) 4,000 (7) $1,169,800 $1,169,800 The following additional information is provided: 1. * The cash balance Petty cash fund Cash advance to employee, payable on demand Saving Account at TD Bank Certificate of deposit (90-days) Chequing account at the Bank of Montreal Bank overdraft at the Scotia Bank Total $ 250 1,000 23,000 10,000 6,750 (750) $ 40,250 2. The allowance for doubtful accounts $7,750. 3. The net realizable value of the inventory that is included in the Statement of Financial Position is $100,000. Inventories do not include $15,000 of merchandise that was in transit at December 31, which was sold to a customer with terms f.o.b. destination. The inventory reached the customer on January 5, 2020. In addition, inventories also do not include $20,000 of inventory that was received by Manga Ltd. for consignment. 4. . The investments section includes the following: notes receivable that was issued on September 1st, 2020 bearing interest at 6% and due on August 31, 2021 $20,000; long-term FV-OCI investment $30,000 carrying value (fair value $26,000 at December 31, 2020); FV-NI Investment 500 common shares of Bilkin Inc. purchased at $10.00 per share (fair value $11.50 per share at December 31, 2020). The company expects to sell the FV-NI shares as soon as the market price increases next year. . 5. The land balance includes land used for operations and recorded at its appraised value of $350,000 (the original cost of the land was $275,000). The company uses the historical cost method to account for property, plant & equipment. 6. The building originally cost $750,000. Depreciation for 2020 has already been recorded. 7. The copyright originally cost $10,000 and is being amortized over 5 years on a straight-line basis. Amortization for 2020 had already been recorded. 8. The company borrowed $50,000 from XYZ Bank. The bank charges 5% and the loan is due May 1st 2026. As part of the bank loan XYZ Bank required Basilica Corp. to pledge their building as security for the loan in other words it is the banks collateral). Instructions: a. List two items that should be excluded from cash and cash equivalents from point 1 and explain. (2 marks) b. Explain whether the two inventory items mentioned in point 3 should be included or excluded from Basilica Corp.'s inventory and why. (4 marks) c. The company is a Canadian public company. Restate the asset side of Basilica's Statement of Financial Position sheet at December 31, 2020 in good form. The categories are: Current Assets, Long-term Investments, Property, Plant & Equipment and Intangible Assets. You can refer to chapter 5, 7, 8, 9, 10 and 11. (16 marks) d. Given part (C) identify the disclosure requirements. (4 marks) e. Assuming the Accumulated Other Comprehensive Income was $10,000 credit balance at the beginning of 2020, what would be the Accumulated Other Comprehensive Income at the end of the 2020? (1 mark) f. Peer evaluation. Only submit/e-mail this if a student in your group did not contribute a lot to the group assignment