The buildings, land, and machinery are all stated at cost except for a parcel of

Question

The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $62,000 but, due to a significant increase in market value, is listed at $144,000. The increase in the land account was credited to retained earnings.

Marketable equity securities consist of stocks of other corporations and are recorded at cost, $32,000 of which will be sold in the coming year. The remainder will be held indefinitely.

Notes payable are all long-term. However, a $220,000 note requires an installment payment of $55,000 due in the coming year.

Inventories are recorded at current resale value. The original cost of the inventories is $

What is the retained earnig for the balance sheet? 458,000 is not the answer, because I have tried that.

The following balance sheet for the Hubbard Corporation was prepared by the company:

Explanation / Answer

Assets

Compute the retained earnings.

Assets

Amount($)   Buildings $ 762,000   Land 224,000   Cash 216,000   Accounts receivable (net) 144,000   Inventories 264,000   Machinery 292,000   Patent (net) 112,000   Investment in marketable equity securities 84,000   Total assets $ 2,098,000   Liabilities and shareholders' equity   Accounts payable $ 227,000   Accumulated depreciation 267,000   Notes payable 524,000   Appreciation of inventories 92,000   Common stock, authorized and issued 448,000     112,000 shares of no par stock   Retained earnings 540,000   Total liabilities and shareholders' equity $ 2,098,000

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