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Required:You determine that the account balances listed on the balance sheet are correct but, in certain cases, incorrectly classified. Prepare a properlyclassified balance sheet for the Stevens Company as of December 31, 2013.STEVENS COMPANYBalance SheetDecember 31, 2013AssetsCurrent AssetsCash$2300Temporary investments in marketable securities3200Accounts receivable$5900Less: Allowance for doubtful accounts8005100Inventory6000Prepaid items:Insurance$1200Office supplies8002000Total current assets$18600LongTerm InvestmentsInvestment in heldtomaturity bonds10000Property, Plant, and EquipmentLand
12/7/2014Assignment 84/17$8100Buildings and equipment$35600Less: Accumulated depreciation920026400Total property, plant, and equipment34500Intangible AssetsPatents (net)5000Total Assets$68100LiabilitiesCurrent LiabilitiesAccounts payable$9900Salaries payable1500Taxes payable2500Unearned rent900Total current liabilities$14800LongTerm LiabilitiesBonds payable (due 2017)$11000Less: Discount on bonds payable1000Total longterm liabilities10000Total Liabilities$24800Shareholders' EquityContributed CapitalCommon stock, $10 par$12000Additional paidin capital on common stock10400Total contributed capital$22400Retained earnings24200Total contributed capital and Retained earnings$46600Less: Treasury stock (at cost)3300Total Shareholders' Equity$43300
12/7/2014Assignment 84.Your answer:Wizard Company reports the following on its yearend adjusted trial balance: LongTerm Bonds Payable, $4,500; Unamortized Bond Discount,$600; Accrued Pension Cost, $9,000; Mortgage Payable, $5,000; and Fund to Retire LongTerm Bonds Payable, $8,500.Prepare the longterm liabilities section of Wizard’s yearend balance sheet.5.Your answer:Use of Market MultiplesPockey Company has assembled the following market data, based on commercial real estate sales in the area in the past six months, whichcan be used to indirectly estimate the selling price of a building the company purchased.The building purchased by Pockey Company, which is called "Building Z," has 33,000 square feet and a capitalization rate of 9.7%.What is the fair value of Building Z? Round your final answer to the nearest dollar.