At December 31, 2013, certain accounts included in the property, plant, and equipment section of Reagan Companys balance sheet had the following balances Land $238,680 Buildings 896,880 Leasehold improvements 664,210 Equipment 879,930 During 2014, the following transactions occurred 1 Land site number 621 was acquired for $850,590 In addition, to acquire the land Reagan paid a $52,970commission to a real estate agent Costs of $41,030were incurred to clear the land During the course of clearing the land, timber and gravel were recovered and sold for $18,760 2 A second tract of land (site number 622) with a building was acquired for $421,610 The closing statement indicated that the land value was $307,830and the building value was $113,780 Shortly after acquisition, the building was demolished at a cost of $49,270 A new building was constructed for $339,590plus the following costs Excavation fees $45,350 Architectural design fees 16,890 Building permit fee 2,700 Imputed interest on funds used during construction (stock financing) 8,880 The building was completed and occupied on September 30, 2014 3 A third tract of land (site number 623) was acquired for $658,630and was put on the market for resale 4 During December 2014, costs of $92,920were incurred to improve leased office space The related lease will terminate on December 31, 2016, and is not expected to be renewed (Hint Leasehold improvements should be handled in the same manner as land improvements ) 5 A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines The invoice price of the machines was $85,480, freight costs were $4,030, installation costs were $3,330, and royalty payments for 2014 were $18,360 (a) Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 2014 Disregard the related accumulated depreciation accounts Balance at December 31, 2014 Land $ Buildings $ Leasehold improvements $ Equipment $

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At December 31, 2013, certain accounts included in the property, plant, and equipment section of Reagan Companys balance sheet had the following balances. Land $238,680

At December 31, 2013, certain accounts included in the property, plant, and equipment section of Reagan Companys balance sheet had the following balances.

Land	$238,680
Buildings	896,880
Leasehold improvements	664,210
Equipment	879,930

During 2014, the following transactions occurred.

1.	Land site number 621 was acquired for $850,590. In addition, to acquire the land Reagan paid a $52,970commission to a real estate agent. Costs of $41,030were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $18,760.
2.	A second tract of land (site number 622) with a building was acquired for $421,610. The closing statement indicated that the land value was $307,830and the building value was $113,780. Shortly after acquisition, the building was demolished at a cost of $49,270. A new building was constructed for $339,590plus the following costs.

Excavation fees	$45,350
Architectural design fees	16,890
Building permit fee	2,700
Imputed interest on funds used during construction (stock financing)	8,880

The building was completed and occupied on September 30, 2014.

3.	A third tract of land (site number 623) was acquired for $658,630and was put on the market for resale.
4.	During December 2014, costs of $92,920were incurred to improve leased office space. The related lease will terminate on December 31, 2016, and is not expected to be renewed. (Hint:Leasehold improvements should be handled in the same manner as land improvements.)
5.	A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machines was $85,480, freight costs were $4,030, installation costs were $3,330, and royalty payments for 2014 were $18,360.

(a)

Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 2014. Disregard the related accumulated depreciation accounts.