ACC 537 STUDY Start With a Dream /acc537study.com ACC 537 STUDY Start With a Dream /acc537study.com | Page 6

ACC 537 Week 2 Textbook Problems P10 2 Lobo
Corporation (Team Paper and Solution)
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