Kamla Corporation purchased Nick Company on August 28, 2016. The Balance Sheet of Nick Company is as follows: | Nick Company Balance Sheet August 28, 2016 | | Cash | | $80,000 | | Accounts Payable | | $30,000 | | Accounts Receivable (Gross) | | 60,000 | | Long-Term Notes Payable | | 36,000 | | Short-Term Investments | | 28,000 | | Mortgage Payable | | 60,000 | | Merchandise Inventory | | 28,000 | | Bonds Payable | | 30,000 | | Office Equipment | | 45,000 | | Pension Liability | | 68,000 | | Land | | 90,000 | | Retained Earnings | | 104,000 | | Computers | | 15,000 | | Preferred Stock | | 20,000 | | Trademarks | | 6,000 | | Paid in Capital, Preferred Stock | | 4,000 | | Total Assets | | $352,000 | | Total Liabilities & Stockholders' Equity | | $352,000 | Additional Information: | The amounts shown on the above balance sheet reflects the approximate market values except: | | 1) | | The Allowance for Doubtful Accounts was determined to be $6,000. | | 2) | | Short-Term Investments current market value was $30,000. | | 3) | | Merchandise Inventory was appraised at $24,000. | | 4) | | Office Equipment was appraised at $41,500. | | 5) | | Land was appraised at $92,000. | | 6) | | Computers were appraised at $9,000. | | 7) | | The Trademarks present values were $5,000. | | 8) | | The company's Mortgage Payable correct value should be $68,000. | | 9) | | The Pension Liability was evaluated at $72,000. | | | | |
