AdamskiCorporation manufactures ballet shoes and is in a period of sustained growth. In an effort to expand its production capacity to meet the increased demand for its products, the company recently made several acquisitions of plant and equipment. Tanya Mullinger, newly hired with the title Capital Asset Accountant, requested that Walter Kaster,Adamski's controller, review the following transactions:

Transaction 1

On June 1, 2020,Adamskipurchased equipment from Venghaus Corporation.Adamskiissued a $20,000,4-year, non-interest-bearing note to Venghaus for the new equipment.Adamskiwill pay off the note in4equal instalments due at the end of each of the next4years. At the transaction date, the prevailing market interest rate for obligations of this nature was10%. Freight costs of $425and installation costs of $500were incurred in completing this transaction. The new equipment qualifies for a $2,000government grant.

Transaction 2

On December 1, 2020,Adamskipurchased several assets of Haukap Shoes Inc., a small shoe manufacturer whose owner was retiring. The purchase amounted to $210,000and included the assets in the following list.Adamskiengaged Tennyson Appraisal Inc., an independent appraiser, to determine the assets' fair values, which are also provided.

Haukap

Book ValueFair ValueInventory$60,000$50,000Land40,00080,000Building70,000120,000$170,000$250,000

During its fiscal year ended May 31, 2021,Adamskiincurred $8,000of interest expense to finance these assets.

Transaction 3

On March 1, 2021,Adamskitraded in four units of specialized equipment and paid an additional $25,000cash for a technologically up-to-date machine that should do the same job as the other machines, but much more efficiently and profitably. The equipment that was traded in had a combined carrying amount of $35,000, asAdamskihad recorded $45,000of accumulated depreciation against these assets.Adamski's controller and the sales manager of the supplier company agreed that the new equipment had a fair value of $64,000.

(b1)

For each of the three transactions described above, determine the value at whichAdamskiCorporation should record the acquired assets. For any measurement involving present value concepts, provide your calculations using any of the following: tables, Excel functions, or a financial calculator.(Do not round intermediate calculations. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. The tables in this problem are to be used as a reference for this problem.)

Click here to view the factor table PRESENT VALUE OF 1.

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.

Transaction 1:

Equipment$

Transaction 2:

Inventory$

Land$

Building$

Transaction 3:

Machine$