Ogden Industries purchased the following assets and constructed a building as well. All this was done during the current year.

Assets 1 and 2

These assets were purchased as a lump sum for $186,000 cash. The following information was gathered.

Asset 3
This machine was acquired by making a $25,000 down payment and issuing a $75,000, 1-year, zero-interest-bearing note. The note is to be paid off in at the end of the first year. It was estimated that the asset could have been purchased outright for $91,000.

Asset 4
This machinery was acquired by trading in used machinery. (The exchange lacks commercial substance.)
Facts concerning the trade-in are as follows.
Cost of machinery traded ...............$150,000
Accumulated depreciation to date of sale ......... 60,000
Fair value of machinery traded ............. 96,000
Cash received ................... 20,000
Fair value of machinery acquired ............ 76,000

Asset 5
Machinery was acquired by issuing 1,000 shares of $1 par value common stock. The stock had a market value of $7 per share.
Construction of Building
A building was constructed on land purchased last year at a cost of $120,000. Construction began on March 1 and was completed on September 1. The payments to the contractor were as follows.


Date Payment
3/1 .........$200,000
5/1 ......... 300,000
6/1 ......... 100,000
9/1 ......... 400,000
To finance construction of the building, a $600,000, 10% construction loan was taken out on March 1. The loan was repaid on September 1. The firm had $400,000 of other outstanding debt during the year at a borrowing rate of 12%.

Instructions
Record the acquisition of each of theseassets.

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Depreclation to Date on Seller's Initial Cost on Book Value on Description Seller's Books Seller's Books Appralsed Value Machinery Office furniture $65,000$30,000 10,000 $35,000 15,000 $160,000 40,000 25,000