FOR MORE CLASSES VISIT www. acc537study. com
P10-2( Classification of Acquisition Costs) Selected accounts included in the property, plant, and equipment section of Lobo Corporation % u2019s balance sheet at December 31, 2013, had the following balances.
Land $ 300,000 Land improvements 140,000 Buildings 1,100,000 Equipment 960,000 During 2014, the following transactions occurred.
1. A tract of land was acquired for $ 150,000 as a potential future building site.
2. A plant facility consisting of land and building was acquired from Mendota Company in exchange
for 20,000 shares of Lobo % u2019s common stock. On the acquisition date, Lobo % u2019s stock had a closing market
price of $ 37 per share on a national stock exchange. The plant facility was carried on Mendota % u2019s
books at $ 110,000 for land and $ 320,000 for the building at the exchange date. Current appraised