]. Lennar Corporation [LEN]. Lennar is a homehuilder that competes with Center; and APO. Here is some pertinent economic and accounting data: LEN Balance Sheet As of lIBla'El Assets Liabilities Cash $l0=000 AP 34:00!) AR $3 ,000 Loan Payable 36:0 00 Inventory $4,000 Land 5.0 00 l'vsc assets held for sale $2.000 Total Liabilities 1315.000 PPE $ 12,000 Accum. De rec. 5.000 Equity = PPE book value $6,000 PIC 86:00!) Total Assets $25,000 RE $4.000 Total Equity $111000 Liabilities+Equity 525:000 Notes at BUY 201]: ' LEN's inventory write down policy is to use \"inventory write down expense," instead of "COGS\" expense. . LEN uses linear depreciation. - LEN's PPE has average useful life of 10 years, with $100001?\" salvage value. - The loan carries an annual interest rate of 5% (compounded annually). ' Principal on the loan is due in January 2012. . Cumulative net income of the company is $5,000. [EN experienced the following events in 2011: l. Noted $l=000 of inventory was destroyed and useless as inventory but retained $400 in salvage. value