2018, certain accounts included in the property, plant, and cu 10-4 Comprehensive At December 31, 2018, co LO 10.2 10.2 of Townsand Company's balance sheet had the following b of Towns LO 10.5 AICPA Land $100,000 Adapted Buildings 800,000 Leasehold improvements 500,000 hinery and equipment 700,000 During 2019, the following transactions occurred: 1. Land site number 621 was acquired for S1.000.000. Additionally S60,000 commission to a real estate agent. Co FUUUU. Additionally, to acquire the land. Townsand paid a on to a real estate agent. Costs of $15.000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $5,000. 2. A second tract of land (site number 022) site number 622) with a building was acquired for $300,000. The closing statement indicated that the land value was $200.000 and the building value was $100,000. building was demolished at a cost of $30,000. A new and the building value was $100,000. Shortly after acquisition, the shed at a cost of $30,000. A new building was constructed for $150,000 plus the follow- ing costs: Excavation fees $11,000 Architectural design fees 8,000 Building permit fee 1,000 The building was completed and occupied on September 29, 2019. 4. Extensive work was done to a building occupied site number 623) was acquired for $600,000 and was put on the market for resale. was done to a building occupied by Townsand under a lease agreement that expires on Decem ber 31, 2028. The total cost of the work was $125,000, which consisted of the following Painting of ceilings $ 10,000 (estimated useful life is 1 year) Electrical work 35,000 (estimated useful life is 10 years) Construction of extension to current working area 80,000 (estimated useful life is 30 years) $125,000 The lessor, Steinbeck Company, paid one-half of the costs incurred in connection with the extension to the current working area. 5. During December 2019, costs of $65,000 were incurred to improve leased office space. The related lease will terminate on December 31, 2021, and is not expected to be renewed. 6. A group of new machines was purchased under a royalty agreement that provides for payment of royaltie based on units of production for the machines. The invoice price of the machines was $75,000, freight cost were $2,000, unloading charges were $1,500, and royalty payments for 2019 were $13,000. Required: 1. Prepare a detailed analysis of the changes in the balance sheet ments, and Machinery and Equipment--for 2019. Disreg me changes in the balance sheet accounts Land, Buildings, Leasehold imprun ery and Equipment for 2019. Disregard the related accumulated depreciation List the items in the fact situation that were not used to determine the answer to Requ where, or if, these items should be included in Townsand's financial statements. answer to Requirement 1, and indicate