ACC 537 STUDY Extraordinary Success/acc537study.com ACC 537 STUDY Extraordinary Success/acc537study.c | Page 7

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
values for the land and building, respectively, are $230,000 and
$690,000.
3. Items of machinery and equipment were purchased at a total cost of
$400,000. Additional costs were
incurred as follows.
Freight and unloading $13,000
Sales taxes 20,000
Installation 26,000
4. Expenditures totaling $95,000 were made for new parking lots,
streets, and sidewalks at the corporation%u2019s various plant
locations. These expenditures had an estimated useful life of 15 years.
5. A machine costing $80,000 on January 1, 2004, was scrapped on
June 30, 2014. Double-declining balance depreciation has been
recorded on the basis of a 10-year life.