The financial statements of Post Company and Stamp Company on December 31, Year 5, were as follows: BALANCE SHEETS Assets Cash Accounts receivable Inventories Equipment (net) Buildings (net) Investment in Stamp (at cost) Post Stamp $ 50,000 $ 10,000 250,000 100,000 3,000,000 520,000 6,150,000 2,500,000 2,600,000 850,000 $12,900,000 500,000 $3,630,000 Liabilities and Shareholders' Equity Current liabilities $ 300,000 $ 170,000 Long-term liabilities 4,000,000 Common shares 3,000,000 Retained earnings 5,600,000 1,100,000 500,000 1,860,000 $12,900,000 $3,630,000