Presented below is the unaudited balance sheet as of December 31, Year 2, as prepared by the bookkeeper of Zed Manufacturing Corp., a firm not required to report under federal securities law.

Zed Manufacturing Corp. BALANCE SHEET For the Year Ended December 31, Year 2

AssetsCash$225,000Accounts receivable (net)345,700Inventories560,000Prepaid income taxes40,000Investments57,700Land450,000Building1,750,000Machineryandequipment1,964,000Goodwill37,000Total assets$5,429,400Liabilities and EquityAccounts payable$133,800Mortgage payable900,000Notes payable500,000Lawsuit liability80,000Income taxes payable61,200Deferred tax liability28,000Accumulated depreciation420,000Total liabilities$2,123,000Commonstock,$50par;40,000sharesissued2,231,000Retained earnings1,075,400Total equity$3,306,400Total liabilities and equity$5,429,400

Your firm has been engaged to perform an audit, during which the following data are found:

• Checks totaling $14,000 in payment of accounts payable were mailed on December 30, Year 2, but were not recorded until Year 3. Late in December Year 2, the bank returned a customers $2,000 check, marked "NSF," but no entry was made. Cash includes $100,000 restricted for building purposes.
• Included in accounts receivable is a $30,000 note due on December 31, Year 5, from Zeds president.
• During Year 2, Zed purchased 500 shares of common stock of a major corporation that supplies Zed with raw materials. Total cost of this stock was $51,300, and fair value on December 31, Year 2, was $47,000. Zed elected the fair value option for this investment.
• Treasury stock was recorded at cost when Zed purchased 200 of its own shares for $32 per share in MayYear2. This amount is included in investments.
• On December 30, Year 2, Zed borrowed $500,000 from a bank in exchange for a 10% note payable, maturing December30, Year 7. Equal principal payments are due December 30 of each year, beginning in Year 3. This note is collateralized by a $250,000 tract of land acquired for speculative purposes. This tract is included in the land account.
• The mortgage payable requires $50,000 principal payments, plus interest, at the end of each month. Payments were made on January 31 and February 28, Year 3. The balance of this mortgage was due June30, Year 3. On March 1, Year 3, prior to issuance of the audited financial statements, Zed consummated a noncancelable agreement with the lender to refinance this mortgage. The new terms require $100,000 annual principal payments, plus interest, on February 28 of each year, beginning in Year4. The final payment is due February 28, Year 11.
• The lawsuit liability will be paid in Year 3.
• The following is an analysis of the deferred tax liability at December 31, Year 2:

Deferred tax liability -- depreciation$48,000Deferred tax asset -- lawsuit liability(20,000)Net deferred tax liability$28,000

• $25,000 of the deferred taxes related to depreciation will reverse in Year 3.
• The current income tax expense reported in Zed's Year 2 income statement was $61,200.
• The company was authorized to issue 100,000 shares of $50 par value common stock. The proceeds from the issuance of 40,000 shares of common stock were $2,231,000.

Additional Information:

One of Zed's manufacturing plants is located in a foreign country. This plant is threatened with expropriation. Expropriation is deemed to be reasonably possible. Any compensation from the foreign government would be less than the carrying amount of the plant.

For each of the following accounts, enter in the associated cell the amount that Zed Manufacturing Corp. will report on its corrected classified balance sheet as of December31, Year2. Indicate negative numbers by using a leading minus (-) sign.

AccountAmount1. Cash2. Accounts receivable3. Long-term investments4. Land5. Accounts payable6. Income taxes payable7. Common stock8. Deferred tax liability9. Cost of treasury stock