Assets 1 and 2: These assets were purchased as a lump sum for $230,000 cash. The rollowing information was gathered. Initial Cost on Seller's Books $230,000 138,000 Book Value on Date on Seller's BooksSeller's Books $115,000 115,000 Depreciation to Description Appraised Value $115,000 23,000 $207,000 69,000 Equipment Asset 3: This machine was acquired by making a $23,000 down payment and issuing a $69,000, 2-year, zero-interest-bearing note. The note is to be paid off in two $34,500 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $82,570 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 Accumulated depreciation to date of sale Fair value of machinery traded Cash received Fair value of machinery acquired $230,000 92,000 184,000 23,000 161,000 Asset 5: Equipment was acquired by issuing 100 shares of $18 par value common stock. The stock had a market price of $25 per share. Construction of Building: A building was constructed on land purchased last year at a cost of $345,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows. Date ent $276,000 82B,000 9/1 1,104,000 11/1 230,000 2/1