A1 P10-1 (LO1) Classification of Acquisition and Other Asset Costs A B C D 26 Completion and occupancy date of building E F Sept. 30,2020 G 27 3. Acquisition of a third tract of land (site number 623) (Put on the market for resale) $650,000 4. Costs of improving leased office during December 2020. The related lease will $89,000 terminate on December 31,2022 , and is not expected to be renewed. (Hint:Leasehold improvements should be handled in the same manner as land improvements.) 5. Purchase of a group of new machines under a royalty agreement that provides for payment of royalties based on units of production for the machines 35 Invoice price of the machines Freight costs Installation costs Royally payments for 2020 $87,000 36 37 38 39 40 41 Instructions: 42 (a) Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 43 2020: 44 Land 45 Buildings 46 Leasehold improvements 47 Equipment 48 Disregard the related accurnulated depreciation accounts. 49 REAGAN COMPANY 50. Analysis of Land Account for 2020 51 A1 fi P10-1 (L.O1) Classification of Acquisition and Other Asset Costs 41 Instructions: C D E F G 42 (a) Prepare a detalled analysis of the changes in each of the following balance sheet accounts for 43 2020: \begin{tabular}{|l|l|} \hline 44 & Land \\ \hline 45 & Buildings \\ \hline 46 & \end{tabular} 46 Leasehold Improvements 47 Equipment 48 Disregard the related accumulated depreciation accounts. 49 50 REAGAN COMPANY Analysis of Land Account for 2020 (b) List the items in the situation that were not used to determine the answer to (a) above, and indicate where, or if, these items should be included in Reagan's financial statements