A new CEO was hired to revive the floundering Heirloom Watch Corporation. The company had endured operating losses for several years, but confidence was emerging that better times were ahead. The board of directors and shareholders approved a quasi-reorganization for the corporation. The reorganization included devaluing inventory for obsolescence by $210 million and increasing land by $10 million. Immediately before the restatement, at December 31, 2018, Heirloom Watch Corporation's balance sheet appeared as follows (in condensed form): 
Required:
1. Prepare the journal entries appropriate to record the quasi-reorganization on January 1, 2019.
2. Prepare a balance sheet as it would appear immediately after the restatement.
Definitions:
Beta
A measure of a stock's volatility in relation to the overall market, indicating the stock's susceptibility to market movements.
Alpha
A measure of an investment's performance on a risk-adjusted basis, indicating how much better or worse it did compared to a benchmark index.
Expected Rate of Return
The weighted average of possible returns for an investment, acknowledging different scenarios and their probabilities.
Boeing
An American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide.
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