Determine the amounts that Company M would report in its post-acquisition balance sheet .

Question

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 2, Problem 28P

a.

To determine

Determine the amounts that Company M would report in its post-acquisition balance sheet.

a.

Expert Solution

Explanation of Solution

The amounts that Company M would report in its post-acquisition balance sheet are as follows:

Particulars	Company C	Company K
Cash	$ 18,000 (1)	$ 20,000
Receivables	$ 270,000	$ 90,000
Inventory	$ 360,000	$ 140,000
Land	$ 200,000	$ 180,000
Buildings (net)	$ 420,000	$ 220,000
Equipment (net)	$ 160,000	$ 50,000
Investment in Company T	$ 515,000 (2)

Total assets	$ 1,943,000	$ 700,000

Accounts payable	$ (150,000)	$ (40,000)
Long-term liabilities	$ (630,000)	$ (200,000)
Common stock	$ (130,000)	$ (120,000)
Additional paid-in capital	$ (528,000) (3)	$ -
Retained earnings, 1/1/18	$ (505,000) (4)	$ (340,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)

Table: (1)

Working note:

Calculation of cash:

Cash = Book value of cash in books of M − Stock issuance cost − Acquisition cost= $60,000 − $12,000 − $30,000= $18,000 (1)

Calculation of investment:

Investment in Company T= Fair value of assets and liabilities+ Undervalued assets= $20,000 + $90,000 + $140,000 + $180,000 + $220,000 + $50,000− $40,000 − $200,000 + $55,000= $515,000 (2)

Calculation of Additional paid-in Capital:

Additional paid-in Capital = Additional paid-in Capital of Company M + New Additional paid-in Capital − Stock issuance cost= $360,000 + (20,000 × 9) − $12,000= $528,000 (3)

Calculation of Retained earnings, 1/1/18:

Retained earnings, 1/1/18 = $420,000 + Gain on bargain purchase − Amount paid to lawyers= $420,000 + $115,000 − $30,000= $505,000 (4)

b.

To determine

Prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2018.

b.

Expert Solution

Explanation of Solution

The worksheet to consolidate the balance sheets of these two companies as of January 1, 2018 is as follows:

Particulars	Company C	Company K	Consolidated Entries		Consolidated Balances
Cash	$ 18,000	$ 20,000			$ 38,000
Receivables	$ 270,000	$ 90,000			$ 360,000
Inventory	$ 360,000	$ 140,000	$ 5,000		$ 505,000
Land	$ 200,000	$ 180,000	$ 20,000		$ 400,000
Buildings (net)	$ 420,000	$ 220,000	$ 30,000		$ 670,000
Equipment (net)	$ 160,000	$ 50,000			$ 210,000
Investment in Company T	$ 515,000			$ 460,000
				$ 55,000	$ -
Total assets	$ 1,943,000	$ 700,000			$ 2,183,000

Accounts payable	$ (150,000)	$ (40,000)			$ (190,000)
Long-term liabilities	$ (630,000)	$ (200,000)			$ (830,000)
Common stock	$ (130,000)	$ (120,000)	$ 120,000		$ (130,000)
Additional paid-in capital	$ (528,000)	$ -			$ (528,000)
Retained earnings, 1/1/18	$ (505,000)	$ (340,000)	$ 340,000		$ (505,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)	$ 515,000	$ 515,000	$ (2,183,000)

Table: (2)

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Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 2, Problem 28P

a.

To determine

Determine the amounts that Company M would report in its post-acquisition balance sheet.

a.

Expert Solution

Explanation of Solution

The amounts that Company M would report in its post-acquisition balance sheet are as follows:

Particulars	Company C	Company K
Cash	$ 18,000 (1)	$ 20,000
Receivables	$ 270,000	$ 90,000
Inventory	$ 360,000	$ 140,000
Land	$ 200,000	$ 180,000
Buildings (net)	$ 420,000	$ 220,000
Equipment (net)	$ 160,000	$ 50,000
Investment in Company T	$ 515,000 (2)

Total assets	$ 1,943,000	$ 700,000

Accounts payable	$ (150,000)	$ (40,000)
Long-term liabilities	$ (630,000)	$ (200,000)
Common stock	$ (130,000)	$ (120,000)
Additional paid-in capital	$ (528,000) (3)	$ -
Retained earnings, 1/1/18	$ (505,000) (4)	$ (340,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)

Table: (1)

Working note:

Calculation of cash:

Cash = Book value of cash in books of M − Stock issuance cost − Acquisition cost= $60,000 − $12,000 − $30,000= $18,000 (1)

Calculation of investment:

Investment in Company T= Fair value of assets and liabilities+ Undervalued assets= $20,000 + $90,000 + $140,000 + $180,000 + $220,000 + $50,000− $40,000 − $200,000 + $55,000= $515,000 (2)

Calculation of Additional paid-in Capital:

Additional paid-in Capital = Additional paid-in Capital of Company M + New Additional paid-in Capital − Stock issuance cost= $360,000 + (20,000 × 9) − $12,000= $528,000 (3)

Calculation of Retained earnings, 1/1/18:

Retained earnings, 1/1/18 = $420,000 + Gain on bargain purchase − Amount paid to lawyers= $420,000 + $115,000 − $30,000= $505,000 (4)

b.

To determine

Prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2018.

b.

Expert Solution

Explanation of Solution

The worksheet to consolidate the balance sheets of these two companies as of January 1, 2018 is as follows:

Particulars	Company C	Company K	Consolidated Entries		Consolidated Balances
Cash	$ 18,000	$ 20,000			$ 38,000
Receivables	$ 270,000	$ 90,000			$ 360,000
Inventory	$ 360,000	$ 140,000	$ 5,000		$ 505,000
Land	$ 200,000	$ 180,000	$ 20,000		$ 400,000
Buildings (net)	$ 420,000	$ 220,000	$ 30,000		$ 670,000
Equipment (net)	$ 160,000	$ 50,000			$ 210,000
Investment in Company T	$ 515,000			$ 460,000
				$ 55,000	$ -
Total assets	$ 1,943,000	$ 700,000			$ 2,183,000

Accounts payable	$ (150,000)	$ (40,000)			$ (190,000)
Long-term liabilities	$ (630,000)	$ (200,000)			$ (830,000)
Common stock	$ (130,000)	$ (120,000)	$ 120,000		$ (130,000)
Additional paid-in capital	$ (528,000)	$ -			$ (528,000)
Retained earnings, 1/1/18	$ (505,000)	$ (340,000)	$ 340,000		$ (505,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)	$ 515,000	$ 515,000	$ (2,183,000)

Table: (2)

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 2, Problem 28P

a.

To determine

Determine the amounts that Company M would report in its post-acquisition balance sheet.

a.

Expert Solution

Explanation of Solution

The amounts that Company M would report in its post-acquisition balance sheet are as follows:

Particulars	Company C	Company K
Cash	$ 18,000 (1)	$ 20,000
Receivables	$ 270,000	$ 90,000
Inventory	$ 360,000	$ 140,000
Land	$ 200,000	$ 180,000
Buildings (net)	$ 420,000	$ 220,000
Equipment (net)	$ 160,000	$ 50,000
Investment in Company T	$ 515,000 (2)

Total assets	$ 1,943,000	$ 700,000

Accounts payable	$ (150,000)	$ (40,000)
Long-term liabilities	$ (630,000)	$ (200,000)
Common stock	$ (130,000)	$ (120,000)
Additional paid-in capital	$ (528,000) (3)	$ -
Retained earnings, 1/1/18	$ (505,000) (4)	$ (340,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)

Table: (1)

Working note:

Calculation of cash:

Cash = Book value of cash in books of M − Stock issuance cost − Acquisition cost= $60,000 − $12,000 − $30,000= $18,000 (1)

Calculation of investment:

Investment in Company T= Fair value of assets and liabilities+ Undervalued assets= $20,000 + $90,000 + $140,000 + $180,000 + $220,000 + $50,000− $40,000 − $200,000 + $55,000= $515,000 (2)

Calculation of Additional paid-in Capital:

Additional paid-in Capital = Additional paid-in Capital of Company M + New Additional paid-in Capital − Stock issuance cost= $360,000 + (20,000 × 9) − $12,000= $528,000 (3)

Calculation of Retained earnings, 1/1/18:

Retained earnings, 1/1/18 = $420,000 + Gain on bargain purchase − Amount paid to lawyers= $420,000 + $115,000 − $30,000= $505,000 (4)

b.

To determine

Prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2018.

b.

Expert Solution

Explanation of Solution

The worksheet to consolidate the balance sheets of these two companies as of January 1, 2018 is as follows:

Particulars	Company C	Company K	Consolidated Entries		Consolidated Balances
Cash	$ 18,000	$ 20,000			$ 38,000
Receivables	$ 270,000	$ 90,000			$ 360,000
Inventory	$ 360,000	$ 140,000	$ 5,000		$ 505,000
Land	$ 200,000	$ 180,000	$ 20,000		$ 400,000
Buildings (net)	$ 420,000	$ 220,000	$ 30,000		$ 670,000
Equipment (net)	$ 160,000	$ 50,000			$ 210,000
Investment in Company T	$ 515,000			$ 460,000
				$ 55,000	$ -
Total assets	$ 1,943,000	$ 700,000			$ 2,183,000

Accounts payable	$ (150,000)	$ (40,000)			$ (190,000)
Long-term liabilities	$ (630,000)	$ (200,000)			$ (830,000)
Common stock	$ (130,000)	$ (120,000)	$ 120,000		$ (130,000)
Additional paid-in capital	$ (528,000)	$ -			$ (528,000)
Retained earnings, 1/1/18	$ (505,000)	$ (340,000)	$ 340,000		$ (505,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)	$ 515,000	$ 515,000	$ (2,183,000)

Table: (2)

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 2, Problem 28P

a.

To determine

Determine the amounts that Company M would report in its post-acquisition balance sheet.

a.

Expert Solution

Explanation of Solution

The amounts that Company M would report in its post-acquisition balance sheet are as follows:

Particulars	Company C	Company K
Cash	$ 18,000 (1)	$ 20,000
Receivables	$ 270,000	$ 90,000
Inventory	$ 360,000	$ 140,000
Land	$ 200,000	$ 180,000
Buildings (net)	$ 420,000	$ 220,000
Equipment (net)	$ 160,000	$ 50,000
Investment in Company T	$ 515,000 (2)

Total assets	$ 1,943,000	$ 700,000

Accounts payable	$ (150,000)	$ (40,000)
Long-term liabilities	$ (630,000)	$ (200,000)
Common stock	$ (130,000)	$ (120,000)
Additional paid-in capital	$ (528,000) (3)	$ -
Retained earnings, 1/1/18	$ (505,000) (4)	$ (340,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)

Table: (1)

Working note:

Calculation of cash:

Cash = Book value of cash in books of M − Stock issuance cost − Acquisition cost= $60,000 − $12,000 − $30,000= $18,000 (1)

Calculation of investment:

Investment in Company T= Fair value of assets and liabilities+ Undervalued assets= $20,000 + $90,000 + $140,000 + $180,000 + $220,000 + $50,000− $40,000 − $200,000 + $55,000= $515,000 (2)

Calculation of Additional paid-in Capital:

Additional paid-in Capital = Additional paid-in Capital of Company M + New Additional paid-in Capital − Stock issuance cost= $360,000 + (20,000 × 9) − $12,000= $528,000 (3)

Calculation of Retained earnings, 1/1/18:

Retained earnings, 1/1/18 = $420,000 + Gain on bargain purchase − Amount paid to lawyers= $420,000 + $115,000 − $30,000= $505,000 (4)

b.

To determine

Prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2018.

b.

Expert Solution

Explanation of Solution

The worksheet to consolidate the balance sheets of these two companies as of January 1, 2018 is as follows:

Particulars	Company C	Company K	Consolidated Entries		Consolidated Balances
Cash	$ 18,000	$ 20,000			$ 38,000
Receivables	$ 270,000	$ 90,000			$ 360,000
Inventory	$ 360,000	$ 140,000	$ 5,000		$ 505,000
Land	$ 200,000	$ 180,000	$ 20,000		$ 400,000
Buildings (net)	$ 420,000	$ 220,000	$ 30,000		$ 670,000
Equipment (net)	$ 160,000	$ 50,000			$ 210,000
Investment in Company T	$ 515,000			$ 460,000
				$ 55,000	$ -
Total assets	$ 1,943,000	$ 700,000			$ 2,183,000

Accounts payable	$ (150,000)	$ (40,000)			$ (190,000)
Long-term liabilities	$ (630,000)	$ (200,000)			$ (830,000)
Common stock	$ (130,000)	$ (120,000)	$ 120,000		$ (130,000)
Additional paid-in capital	$ (528,000)	$ -			$ (528,000)
Retained earnings, 1/1/18	$ (505,000)	$ (340,000)	$ 340,000		$ (505,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)	$ 515,000	$ 515,000	$ (2,183,000)

Table: (2)

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Answer 5

Chapter 2, Problem 28P

a.

To determine

Determine the amounts that Company M would report in its post-acquisition balance sheet.

a.

Expert Solution

Explanation of Solution

The amounts that Company M would report in its post-acquisition balance sheet are as follows:

Particulars	Company C	Company K
Cash	$ 18,000 (1)	$ 20,000
Receivables	$ 270,000	$ 90,000
Inventory	$ 360,000	$ 140,000
Land	$ 200,000	$ 180,000
Buildings (net)	$ 420,000	$ 220,000
Equipment (net)	$ 160,000	$ 50,000
Investment in Company T	$ 515,000 (2)

Total assets	$ 1,943,000	$ 700,000

Accounts payable	$ (150,000)	$ (40,000)
Long-term liabilities	$ (630,000)	$ (200,000)
Common stock	$ (130,000)	$ (120,000)
Additional paid-in capital	$ (528,000) (3)	$ -
Retained earnings, 1/1/18	$ (505,000) (4)	$ (340,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)

Table: (1)

Working note:

Calculation of cash:

Cash = Book value of cash in books of M − Stock issuance cost − Acquisition cost= $60,000 − $12,000 − $30,000= $18,000 (1)

Calculation of investment:

Investment in Company T= Fair value of assets and liabilities+ Undervalued assets= $20,000 + $90,000 + $140,000 + $180,000 + $220,000 + $50,000− $40,000 − $200,000 + $55,000= $515,000 (2)

Calculation of Additional paid-in Capital:

Additional paid-in Capital = Additional paid-in Capital of Company M + New Additional paid-in Capital − Stock issuance cost= $360,000 + (20,000 × 9) − $12,000= $528,000 (3)

Calculation of Retained earnings, 1/1/18:

Retained earnings, 1/1/18 = $420,000 + Gain on bargain purchase − Amount paid to lawyers= $420,000 + $115,000 − $30,000= $505,000 (4)

b.

To determine

Prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2018.

b.

Expert Solution

Explanation of Solution

The worksheet to consolidate the balance sheets of these two companies as of January 1, 2018 is as follows:

Particulars	Company C	Company K	Consolidated Entries		Consolidated Balances
Cash	$ 18,000	$ 20,000			$ 38,000
Receivables	$ 270,000	$ 90,000			$ 360,000
Inventory	$ 360,000	$ 140,000	$ 5,000		$ 505,000
Land	$ 200,000	$ 180,000	$ 20,000		$ 400,000
Buildings (net)	$ 420,000	$ 220,000	$ 30,000		$ 670,000
Equipment (net)	$ 160,000	$ 50,000			$ 210,000
Investment in Company T	$ 515,000			$ 460,000
				$ 55,000	$ -
Total assets	$ 1,943,000	$ 700,000			$ 2,183,000

Accounts payable	$ (150,000)	$ (40,000)			$ (190,000)
Long-term liabilities	$ (630,000)	$ (200,000)			$ (830,000)
Common stock	$ (130,000)	$ (120,000)	$ 120,000		$ (130,000)
Additional paid-in capital	$ (528,000)	$ -			$ (528,000)
Retained earnings, 1/1/18	$ (505,000)	$ (340,000)	$ 340,000		$ (505,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)	$ 515,000	$ 515,000	$ (2,183,000)

Table: (2)

Answer 6

Chapter 2, Problem 28P

a.

To determine

Determine the amounts that Company M would report in its post-acquisition balance sheet.

a.

Expert Solution

Explanation of Solution

The amounts that Company M would report in its post-acquisition balance sheet are as follows:

Particulars	Company C	Company K
Cash	$ 18,000 (1)	$ 20,000
Receivables	$ 270,000	$ 90,000
Inventory	$ 360,000	$ 140,000
Land	$ 200,000	$ 180,000
Buildings (net)	$ 420,000	$ 220,000
Equipment (net)	$ 160,000	$ 50,000
Investment in Company T	$ 515,000 (2)

Total assets	$ 1,943,000	$ 700,000

Accounts payable	$ (150,000)	$ (40,000)
Long-term liabilities	$ (630,000)	$ (200,000)
Common stock	$ (130,000)	$ (120,000)
Additional paid-in capital	$ (528,000) (3)	$ -
Retained earnings, 1/1/18	$ (505,000) (4)	$ (340,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)

Table: (1)

Working note:

Calculation of cash:

Cash = Book value of cash in books of M − Stock issuance cost − Acquisition cost= $60,000 − $12,000 − $30,000= $18,000 (1)

Calculation of investment:

Investment in Company T= Fair value of assets and liabilities+ Undervalued assets= $20,000 + $90,000 + $140,000 + $180,000 + $220,000 + $50,000− $40,000 − $200,000 + $55,000= $515,000 (2)

Calculation of Additional paid-in Capital:

Additional paid-in Capital = Additional paid-in Capital of Company M + New Additional paid-in Capital − Stock issuance cost= $360,000 + (20,000 × 9) − $12,000= $528,000 (3)

Calculation of Retained earnings, 1/1/18:

Retained earnings, 1/1/18 = $420,000 + Gain on bargain purchase − Amount paid to lawyers= $420,000 + $115,000 − $30,000= $505,000 (4)

Answer 7

Chapter 2, Problem 28P

a.

To determine

Determine the amounts that Company M would report in its post-acquisition balance sheet.

Answer 8

a.

Expert Solution

Explanation of Solution

The amounts that Company M would report in its post-acquisition balance sheet are as follows:

Particulars	Company C	Company K
Cash	$ 18,000 (1)	$ 20,000
Receivables	$ 270,000	$ 90,000
Inventory	$ 360,000	$ 140,000
Land	$ 200,000	$ 180,000
Buildings (net)	$ 420,000	$ 220,000
Equipment (net)	$ 160,000	$ 50,000
Investment in Company T	$ 515,000 (2)

Total assets	$ 1,943,000	$ 700,000

Accounts payable	$ (150,000)	$ (40,000)
Long-term liabilities	$ (630,000)	$ (200,000)
Common stock	$ (130,000)	$ (120,000)
Additional paid-in capital	$ (528,000) (3)	$ -
Retained earnings, 1/1/18	$ (505,000) (4)	$ (340,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)

Table: (1)

Working note:

Calculation of cash:

Cash = Book value of cash in books of M − Stock issuance cost − Acquisition cost= $60,000 − $12,000 − $30,000= $18,000 (1)

Calculation of investment:

Investment in Company T= Fair value of assets and liabilities+ Undervalued assets= $20,000 + $90,000 + $140,000 + $180,000 + $220,000 + $50,000− $40,000 − $200,000 + $55,000= $515,000 (2)

Calculation of Additional paid-in Capital:

Additional paid-in Capital = Additional paid-in Capital of Company M + New Additional paid-in Capital − Stock issuance cost= $360,000 + (20,000 × 9) − $12,000= $528,000 (3)

Calculation of Retained earnings, 1/1/18:

Retained earnings, 1/1/18 = $420,000 + Gain on bargain purchase − Amount paid to lawyers= $420,000 + $115,000 − $30,000= $505,000 (4)

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

To determine

Prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2018.

b.

Expert Solution

Explanation of Solution

The worksheet to consolidate the balance sheets of these two companies as of January 1, 2018 is as follows:

Particulars	Company C	Company K	Consolidated Entries		Consolidated Balances
Cash	$ 18,000	$ 20,000			$ 38,000
Receivables	$ 270,000	$ 90,000			$ 360,000
Inventory	$ 360,000	$ 140,000	$ 5,000		$ 505,000
Land	$ 200,000	$ 180,000	$ 20,000		$ 400,000
Buildings (net)	$ 420,000	$ 220,000	$ 30,000		$ 670,000
Equipment (net)	$ 160,000	$ 50,000			$ 210,000
Investment in Company T	$ 515,000			$ 460,000
				$ 55,000	$ -
Total assets	$ 1,943,000	$ 700,000			$ 2,183,000

Accounts payable	$ (150,000)	$ (40,000)			$ (190,000)
Long-term liabilities	$ (630,000)	$ (200,000)			$ (830,000)
Common stock	$ (130,000)	$ (120,000)	$ 120,000		$ (130,000)
Additional paid-in capital	$ (528,000)	$ -			$ (528,000)
Retained earnings, 1/1/18	$ (505,000)	$ (340,000)	$ 340,000		$ (505,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)	$ 515,000	$ 515,000	$ (2,183,000)

Table: (2)

Answer 13

b.

To determine

Prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2018.

Answer 14

b.

Expert Solution

Explanation of Solution

The worksheet to consolidate the balance sheets of these two companies as of January 1, 2018 is as follows:

Particulars	Company C	Company K	Consolidated Entries		Consolidated Balances
Cash	$ 18,000	$ 20,000			$ 38,000
Receivables	$ 270,000	$ 90,000			$ 360,000
Inventory	$ 360,000	$ 140,000	$ 5,000		$ 505,000
Land	$ 200,000	$ 180,000	$ 20,000		$ 400,000
Buildings (net)	$ 420,000	$ 220,000	$ 30,000		$ 670,000
Equipment (net)	$ 160,000	$ 50,000			$ 210,000
Investment in Company T	$ 515,000			$ 460,000
				$ 55,000	$ -
Total assets	$ 1,943,000	$ 700,000			$ 2,183,000

Accounts payable	$ (150,000)	$ (40,000)			$ (190,000)
Long-term liabilities	$ (630,000)	$ (200,000)			$ (830,000)
Common stock	$ (130,000)	$ (120,000)	$ 120,000		$ (130,000)
Additional paid-in capital	$ (528,000)	$ -			$ (528,000)
Retained earnings, 1/1/18	$ (505,000)	$ (340,000)	$ 340,000		$ (505,000)
Total liabilities and equity	$ (1,943,000)	$ (700,000)	$ 515,000	$ 515,000	$ (2,183,000)