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Presented below is the balance sheet of Blossom Corporation as of December 31, 2017. BLOSSOM CORPORATION BALANCE SHEET DECEMBER 31, 2017 Assets Goodwill (Note 2)

Presented below is the balance sheet of Blossom Corporation as of December 31, 2017.

BLOSSOM CORPORATION BALANCE SHEET DECEMBER 31, 2017

Assets

Goodwill (Note 2) $ 123,800
Buildings (Note 1) 1,640,000
Inventory 315,900
Land 950,000
Accounts receivable 173,800
Treasury stock (50,000 shares) 90,800
Cash on hand 179,700
Assets allocated to trustee for plant expansion
Cash in bank 73,800
Debt investments (held-to-maturity) 141,800
$3,689,600

Equities

Notes payable (Note 3) $ 603,800
Common stock, authorized and issued, 1,000,000 shares, no par 1,153,800
Retained earnings 806,800
Noncontrolling interest 58,800
Appreciation capital (Note 1) 573,800
Income tax payable 78,800
Reserve for depreciation recorded to date on the building 413,800
$3,689,600

Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $573,800. Depreciation has been recorded based on cost. Note 2: Goodwill in the amount of $123,800 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $123,800 was credited to Retained Earnings. Note 3: Notes payable are long-term except for the current installment due of $100,000. Prepare a corrected classified balance sheet in good form. The notes above are for information only

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