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		$200,000
Accumulated depreciation to date of sale		80,000
Fair value of machinery traded		160,000
Cash received		20,000
Fair value of machinery acquired		140,000

Record the acquisition of each of these assets.

Machinery ?

Accumulated depreciation-machinery 80,000

Cash 20,000

Machinery 200,000

Gain on Disposal of Machinery ?

Asset 5: Equipment was acquired by issuing 100 shares of $16 par value common stock. The stock had a market price of $22 per share. Construction of Building: A building was constructed on land purchased last year at a cost of $300,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows.

Date		Payment
2/1		$240,000
6/1		720,000
9/1		960,000
11/1		200,000

To finance construction of the building, a $1,200,000, 12% construction loan was taken out on February 1. The loan was repaid on November 1. The firm had $400,000 of other outstanding debt during the year at a borrowing rate of 8%.

Buildings ?

Land 300,000

Cash 2,420,000

Interest Expense ?