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 Fair Value $ 22,400 20,400 123,000 296,000 134,000 155,000 155,000 268,000 157,000 130,000 The company has a reorganization value of $834,000 Smith has 51,000 shares of $10 par value common stock outstanding. A deficit Retained Earnings balance of $695,000 also is reported. The owners will distribute 35,700 shares of this stock as part of the reorganization plan The company's liabilities will be settled as follows Accounts payable of $190,000 (existing at the date on which the order for relief was granted) will be settled with an 8 Accounts payable of $97,900 (incurred since the date on which the order for relief was granted) will be paid in the regular . Note payable-First Metropolitan Bank of $211,000 will be settled with an 8 percent, five-year note for $51,700 and 17,900 . Note payable-Northwestern Bank of Tulsa of $371,000 will be settled with a 7 percent, eight-year note for $111,000 and percent, two-year note for $36,000 course of business shares of the stock contributed by the owners 17,900 shares of the stock contributed by the owners