Smith Corporation has gone through bankruptcy and is ready to emerge as a reorganized entity on December 31, 2020. On this date, the company has the following assets (fair value is based on discounting the anticipated future cash flows): Accounts receivable Inventory Land and buildings Machinery Patents Book Value Fair Value $ 22,700 $ 20,700 153,000 121,000 263,000 291,000 135,000 112,000 119,000 144,000 The company has a reorganization value of $836,000. Smith has 51,000 shares of $10 par value common stock outstanding. A deficit Retained Earnings balance of $682,000 also is reported. The owners will distribute 34,400 shares of this stock as part of the reorganization plan. The company's liabilities will be settled as follows: Accounts payable of $187,000 (existing at the date on which the order for relief was granted) will be settled with an 8 percent, two- year note for $36,900. Accounts payable of $99,700 (incurred since the date on which the order for relief was granted) will be paid in the regular course of business. Note payable-First Metropolitan Bank of $201,000 will be settled with an 8 percent, five-year note for $51,600 and 17,200 shares of the stock contributed by the owners. Note payable-Northwestern Bank of Tulsa of $377,000 will be settled with a 7 percent, eight-year note for $113,000 and 17,200 shares of the stock contributed by the owners. b. Prepare a balance sheet for Smith Corporation upon its emergence from reorganization.