Question 13:

AICPA.101201FAR-SIM

The following trial balance of JB Company at December 31, Year five, has been adjusted except for income taxes. The income tax rate is 30%.

	DR	CR
Accounts receivable, net	$725,000
Accounts payable		250,000
Accumulated depreciation		125,000
Cash	185,000
Contributed capital		650,000
Expenses	3,750,000
Goodwill	140,000
Prepaid taxes	225,000
Property, plant, and equipment	850,000
Retained earnings, 1/1/year five		350,000
Revenues	__________	4,500,000
	5,875,000	5,875,000

During year five, estimated tax payments of $225,000 were paid and debited to prepaid taxes. There were no differences between financial statement and taxable income for year five.

Included in accounts receivable is $400,000 due from a loyal customer. Special terms were granted to this customer to make payments of $100,000 semi-annually every March 1 and September 1.

In JB Company's December 31, year five Balance Sheet, what amount should be reported as current assets?

	710,000
	910,000
	935,000
	1,135,000