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 $ 22,800 150,000 280,000 137,800 102,000 Fair Value $ 20,800 118,000 308,000 114,800 127,000 The company has a reorganization value of $834,000. Smith has 52,900 shares of $10 par value common stock outstanding. A deficit Retained Earnings balance of $700,000 also is reported. The owners will distribute 32,000 shares of this stock as part of the reorganization plan. The company's liabilities will be settled as follows: Accounts payable of $189,000 (existing at the date on which the order for relief was granted) will be settled with an 8 percent, two- year note for $35,500. Accounts payable of $97,600 (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 $207,000 will be settled with an 8 percent, five-year note for $50,900 and 16,000 shares of the stock contributed by the owners. Note payable-Northwestern Bank of Tulsa of $370,000 will be settled with a 7 percent, eight-year note for $107,000 and 16,000 shares of the stock contributed by the owners. b. Prepare a balance sheet for Smith Corporation upon its emergence from reorganization. SMITH CORPORATION Balance Sheet December 31, 2020 ASSETS Current Assets Land, Buildings, and Machinery: Intangible Assets: Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Long-term Liabilities: Total liabilities Stockholders' Equity: Total liabilities and stockholders' equity