PROBLEM $4-2$

The balance sheet of $1780$ Corporation at December $31,2021$ contains the following items:

The company is in financial difficulty and its stockholders and creditors have requested a statement of affairs for planing purposes. The following information is available:

The company estimates that $30$ of the accounts receivable is considered worthless. $98)$ an collechle

Inventories are expected to be realized of $75\%$ of the carrying amounts

The appraised value or the isfritu$0000$ while the building has an appraisal value of P$2000,000"$ Fhe land and building are used as collateral for the P $3,00000$ mortgage and related accrued interest.