P17-5A The financial statements for Zaibak Corp. for the year ended December 31, 2020, are as follows: ZAIBAK CORP. Balance Sheet December 31, 2020 and 2019 Assets Cash Investment in money market fund 2020 2019 $ 10,000 $ 18,000 0 40,000 Accounts receivable 189,000 175,000 Inventory 280,000 610,000 Prepaid expenses 30,000 23,000 Equipment 1,798,000 1,654,000 Less: Accumulated amortization 160,000 120,000 Investment 200,000 0 Goodwill 90,000 100,000 Total assets Liabilities Accounts payable Salaries payable Loan payable Total liabilities Shareholders' equity Preferred shares $2,437,000 $ 176,000 $2,500,000 $ 120,000 110,000 100,000 350,000 400,000 636,000 620,000 800,000 500,000 Common shares 500,000 500,000 Retained earnings 501,000 880,000 Total shareholders' equity 1,801,000 1,880,000 Total liabilities and shareholders' equity $2,437,000 $2,500,000