Smith Corporation has gone through bankruptcy and is ready to emerge as a reorganized entity on December 31, 2017. 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 $ 21,488 156,00 271,eee 158,000 126,000 Fair Value $ 19,400 124, see 299,000 135,000 151,600 The company has a reorganization value of $841,000. Smith has 52.100 shares of $10 par value common stock outstanding. A deficit Retained Earnings balance of $691,000 also is reported. The owners will distribute 30,800 shares of this stock as part of the reorganization plan. The company's liabilities will be settled as follows: Accounts payable of $185,000 (existing at the date on which the order for relief was granted) will be settled with an 8 percent, two-year note for $36,700. Accounts payable of $97,000 (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 $224,000 will be settled with an 8 percent, five-year note for $51,000 and 15,400 shares of the stock contributed by the owners. Note payable-Northwestern Bank of Tulsa of $352,000 will be settled with a 7 percent, eight-year note for $125,000 and 15,400 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, 2017 ASSETS Current Assets Accounts receivable Inventory S 143.400 Land, Buildings, and Equipment: Land and buildings Machinery 299.000 oo 135.000 434,000 Intangible Assets: Patents 151.000 Oo Goodwill 112.800 263,600 341.000 S Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 133.700 Long term Liabilities: Note payable (due in 2 years) Note payable (due in 5 years) 51.000 X 125.000 X 178,000 309.700 $ Total liabilities Stockholders' Equity Common stock (par value) Additional paid-in capital 521.000 10.300 531,300 Total liabilities and stockholders $ 841.000 equity Bestere incicates no response was expec e text indicates no response was expected in a celor a fos-based actions Incorrect, no points deducted