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The bookkeeper for FTI Corp has prepared the following balance sheet as at December 31, 2020: FTI Corp Balance Sheet December 31, 2020 Cash $

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The bookkeeper for FTI Corp has prepared the following balance sheet as at December 31, 2020: FTI Corp Balance Sheet December 31, 2020 Cash $ 200,500 Current Liabilities $ 450,000 Accounts Receivable (net) 101,200 Long-term Liabilities 900,000 Inventories 280,000 Shareholders' Equity 989,700 Investments 100,000 Land 800,000 Building (net) 850,000 Copyright (net) 8.000 $2,339,700 $2,339.700 42 $ 200 4,000 46,300 The following additional information is provided: 1. The cash balance includes: Petty cash fund Cash advance to employee, payable on demand Saving Account at TD Bank Certificate of deposit (90-days) Chequing account at the Bank of Montreal Bank overdraft at the Scotia Bank (no other accounts are held at Total 2. The allowance for doubtful accounts $12,500. 120,000 31,500 (1.500) $ 200,500 Included in the accounts receivable balance was $20,000 which was assigned to Meridian Credit Union on December 31as security for a loan (collateral), the loan bears annual interests at 8% and is due on April 1, 2021. 3. The net realizable value of the inventory that is included in the Balance Sheet is $329,000. Inventories do not include $45,000 of merchandise that was in transit at December 31. of this amount, $20,000 was bought from ONG Inc. with terms f.o.b. shipping point (the net realizable value of this inventory was $34,000) The remainder of inventory that cost $25,000 was shipped to FTI for consignment. The net realizable value for this inventory is $36,000. 1 4. The investments section includes the following: An interest bearing note receivable of $40,000 that was issued on June 1", 2020 bearing interest at 4% and is due on June 1, 2021 Long-term FV-OCI investment $40,000 carrying value (fair value $35,000 at December 31,2020). Management plans on holding on to these investments for a number of years. FV-NI Investment 1,000 common shares of Landon Inc. purchased at $20.00 per share (fair value $23.50 per share at December 31,2020). FTI expected to sell the spares as soon as the market price increases more next year. 5. The land balance includes: land used for operations and recorded at its cost of $800,000 (the appraisal value of the land in 2020 was $1,200,000) 6. The building originally cost $1,100,000. Depreciation for 2020 has already been recorded. 7. The patent originally cost $24,000 and is being amortized over 6 years on a straight-line basis. Amortization for 2020 had already been recorded

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