Problem 5-5 Presented below is the balance sheet of Sargent Corporation for the current year, 2017 PEARL CORPORATION BALANCE SHEET DECEMBER 31, 2017 Current assets 488,860 Current liabilities 383,860 1,003,860 1,773,860 $3,161,580 643,860 Long-term liabilities 1,723,860 Stockholders equity Property, plant, and equipment Intangible assets 305,000 $3,161,580 The following information is presented 1. The current assets section includes cash $153,860, accounts receivable $173,860 less $13,860 for allowance for doubtful accounts, inventories $183,860, and unearned rent revenue $8,860. Inventory is stated on the lower-of-FIFO-cost-or-market. 2. The investments section includes the cash surrender value of a life insurance contract $43,860; investments in common stock, short-term $83,860 and long-term $273,860; and bond sinking fund $242,280 The cost and fair value of investments in common stock are the same 3.Property, plant, and equipment includes buildings $1,043,860 less accumulated depreciation $363,860, equipment $453,860 less accumulated depreciation $183,860, land $503,860, and land held for future use $270,000 4. Intangible assets include a franchise $168,860, goodwill $103,860 and discount on bonds payable $32,280 5. Current liabilities include accounts payable $143,860, notes payable- short-term $83,860 and long-term $123,860, and income taxes payable $32,280 Long-term liabilities are composed solely of 7% bonds payable due 2025 6 '. Stockholders' equity has preferred stock, no par value, authorized 200,000 shares, issued 73,860 shares for $443,160, and common stock, $1.00 par value, authorized 400,000 shares issued 103,860 shares at an average price of $10. In addition, the corporation has retained earnings of $292,100