The following is a list of account balances as of Dec. 31, 2009. Please prepare a multi- step income statement and a classified balance sheet for Passion Inc for 2009. The income tax rate for the year is 35%.

Accumulated Depreciation,Building-$620,000

Accoints Payable-189,000

Accounts Recievable-163,000

Accumulated Depreciation,Machinery-210,000

Allowance for uncollectible accounts-8,000

Building-1,550,000

Cash-67,000

Cost of Goods Sold-832,000

Common Stock-500,000

Dividends Payable-10,000

Franchise-40,000

General And Administration Expense-120,000

Interest Expense-25,000

Interest Income-12,000

Interest Payable-16,000

Interest Receivable-12,000

Inventories-215,000

Land-280,000

Long term investments-35,000

Machinery-637,000

Note Recievable-250,000

Notes Payable-300,000

Paid in capital excess,common- 1,500,000

Patent-152,000

Prepaid Rent-16,000

Research and Developement-77,000

Retained Earrnings-146,000

Sales Discount-30,000

Sales Revenue-1,450,000

Selling Expense-123,000

Short term investments-182,000

Taxes Payable-40,000

Unearned Revenue-60,000

A portion of the entity is expected tobe sold on 6/1/10 with a fair value, minus anticipated costs to sell of 650,000 and a current book value of 800,000. This component incurred a 150,000 loss from operations during this year. 50,000 ofdamaged was caused by a fire to the building. In other instance a earthquake caused 100,000 worth of property damage to the machine and it was deemed material and the event was consider usual and infrequent. Notes payable consists of two notes one for 100,000 June 15, 2011 and another for 200,000 due in four annual installments of 50,000 each with the first payment due on June 30, 2010 Short term investment consist of marketable equity securities that the company plans to sell in 2010 and 50,000 in treasury bills purchased on December 15 of the current year that mature on February 15,2010. Long term investments consist of marketable securities that thecompany does not plan to sell in the next year The cash account includes 30,000 set aside in a fund to pay bons payable that mature in 2010 and 30,000 set aside in a thirty three month t bond Accounts receivablle includes a 20,000 note receivable from a customer due in 2012 One of the companies factories was closed during the year . Restructing costs incurred $125,000 The common stock represents 1 million shares of $1 par stock authorized 500,000 shares issued and outstanding Inventory costing 30,000 was written off as obsolete Material losses of this type are not considered to be unusual The notes receivable is due in installments of 50,000 payable on each september 30. Interest ispayable annually. Unearned revenue represents customer payments for extended service contracts. 80% of these contract expire in 2010. the remainder in 2011 Depreciation Expense for 2008 was understated by 5,000 due to material mathematical mishap Prepaid rent represent 18 months in advance Unrealized Gains on securities avaible for sale of $20,000