1. XYZ Inc. reported the following items in its year-end balance sheet:

• Land: $150,000
• Building: $300,000
• Accumulated Depreciation: $120,000
• Patents: $80,000
• Accounts Payable: $90,000
• Salaries Payable: $40,000
• Bonds Payable: $200,000

1. Calculate the net book value of the building and explain the concept of accumulated depreciation. Additionally, prepare the liabilities section of the balance sheet, showing both current and long-term liabilities.