QUESTION 1 ABC Inc. bought land and built its plant 5 years ago. Land is not depreciated. The depreciation on the building and plant is calculated using the straight-line method, with a life of 20 years and a salvage value of $1,000,000. The depreciation for the equipment, all of which was purchased at the same time the plant was constructed, is calculated using declining-balance method with depreciation rate of 5%. Complete the Balance Sheet below and find: The value for the Total Assets = ? (4 point) The value for the Preferred Shares = ? (4 points) The value for the Acid-Test Ratio = ? (4 points) The value for the Return-on-Equity Ratio = ? (4 points) Note: This is a MULTIPLE-ANSWER problem, you have to select one correct answer for each of the above 4 questions. ABC Industries Balance Sheet (as of June 30, 2021) Assets Liabilities and Owners' Equity Current Assets Current Liabilities Cash Accounts Receivable Securities 1,500,000 800,000 Accounts Payable 1,750,000 Notes Payable 500,000 1,500,000 Accrued Expense 250,000 Inventories 1,000,000 Total Current Liabilities Prepaid Expenses 200,000 Total Current Assets Long-Term Liabilities Mortgage Long-Term Assets Long-Term Debt 1,000,000 500,000 Land 2,000,000 Total Long-Term Liabilities Building and Plant 3,000,000 Less accumulated depreciation Owners' Equity (Net Worth) Preferred Shares Equipment 2,000,000 Common Shares Less accumulated depreciation Total Long-Term Assets Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity 4,500,000 1,500,000 Total Assets Income Statement for ABC Industries Revenues (July 1, 2020 - June 30, 2021) Expenses Sales 6,700,000 Operating Expenses 750,000 Cost of Goods Sold 4,200,000 Depreciation Expense 183,100 Gross Profit 2,500,000 Interest Expense 256,900 Total Expenses 1,190,000 Net Income Before Taxes 1,310,000 Income Taxes (26.5%) 347,150 Net Income before extraordinary item 962,850 Extraordinary Gain 200,000 Net Income 1,162,850