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Problem 5-4 Presented below is the balance sheet of Whispering Corporation as of December 31, 2017 WHISPERING CORPORAT BALANCE SHEET DECEMBER 2017 Goodwill (Note 2) 121,640 Buildings (Note 1) 1,640,000 313,740 Land 950,000 Accounts receivable 171,640 Treasury stock (50,000 shares) 88,640 Cash on hand 177,540 Assets allocated to trustee for plant expansion 71,640 Cash in bank Debt investments (held-to-maturity 139,640 $3,674,480 Equities 601,640 Notes payable (Note 3) Common stock, authorized and issued, 1,000,000 shares, no par 1,151,640 Retained earnings 804,640 Noncontrolling interest 56,640 Appreciation capital (Note 1) 571,640 Income tax payable 76,640 Reserve for depreciation recorded to date on the building 411,640 $3,674,480 Note 1: Buildings are stated at cost, except for one building that was recorded value. The excess of appraisal value over cost was $571,640. Depreciation has been recorded based on cost. Note 2 n the amount of $121,640 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $121,640 was credited to Retained Earnings. Note 3 Notes payable are long-term except for the current installment due of $100,000. Prepare a corrected classified balance sheet in good form. The notes above are for information only. (List Current Assets in order of liquidity.) SPERING CORPORATION Assets Allocated to Trustee for Expansion

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