Question 3: (BI, C2, D3) (10 Points) Adam Company's Trial Balance includes the following accounts: 3 Cash 2000 / Prepaid rent $ 5000/ Unearned reveme $ 8000/ Buildings $200000/ Patents S 12500/ Held to Maturity Securities $ 3500/ Trading Securities $ 4000 Land held for Investments 50000/ Accumulated Depreciation of Buildings $120000/ Goodwill S 6000 Notes Payable $ 3500/ Timberland S 40000/ Cash surrender Value of Life Insurance $ 9000 Franchises $ 5000 Instructions: Prepare Classified Assets Section in the Balance sheet Answer of Question 3 Question 1: (B1&C2&D3) (15 points) Shown below is an income statement for 2019 that was prepared by a poorly trained bookkeeper of Howell Corporation Howell Corporation INCOME STATEMENT December 31, 2019 Sales revenue 895,000 Interest revenue 19,500 Cost of Goods sold (408,500) Selling expenses (145,000) Administrative expense (215,000) Interest expense (13.000 Income before special item 133,000 Special item Loss on disposal of a component of the business (40.000) Net income tax liability (27.900 Net income 65.100 Instructions Prepare an income statement for 2019 for Howell Corporation that is presented in accordance with IFRS (including format and terminology). Howell Corporation has 50,000 Common Stocks Outstanding and has a 30% income tax rate on all tax related items. Answer of Question 1