A. On December 8, 2017, the general manager of Rubble Manufacturing Co. attended a bankruptcy sale and paid $72,500 cash to purchase a fork lift, sorting machinery, and office equipment. The general manager was pleased with the purchase because he estimated the fair value of the items at: $16,000 for the fork lift / $40,000 for the sorting machinery / $24,000 for the office equipment

Prepare the general journal entry to properly record the purchase of the fork lift, packaging equipment, and office equipment. (Give Explanation)

B. On June 30, 2017, Darla Shoes Inc. purchased a plot of land for its new factory for $480,000 cash and paid $24,000 cash as a brokers' commission on the purchase. Prior to constructing the new factory on the land, the company incurred $35,000 to remove an old building and other materials from the land. Darla Shoes Inc. received $7,500 cash from salvaging the materials removed from the land.

On June 30, 2017, Darla Shoes Inc. paid $30,000 cash for real estate taxes for the period beginning July 1, 2017 and ending June 30, 2018.

What was the total historic cost of the land on June 30, 2017, as should have been recorded by Darla Shoes Inc. Inc. under GAAP? (Give Amount)

At December 31, 2017, the land had an appraised value of $580,000. A similar plot of land adjacent to Darla Shoes Inc.s plot sold for $595,000 in December 2017.

In its GAAP balance sheet at December 31, 2017, Darla Shoes Inc. would have reported the land at a total value of? (Give Amount)