At December 31, 2019, certain accounts included in the property, plant, and equipment section of Novak Companys balance sheet had the following balances Land $234,400 Buildings 894,700 Leasehold improvements 662,800 Equipment 881,800 During 2020, the following transactions occurred 1 Land site number 621 was acquired for $852,200 In addition, to acquire the land Novak paid a $54,100 commission to a real estate agent Costs of $40,800 were incurred to clear the land During the course of clearing the land, timber and gravel were recovered and sold for $20,800 2 A second tract of land (site number 622) with a building was acquired for $419,500 The closing statement indicated that the land value was $299,600 and the building value was $119,900 Shortly after acquisition, the building was demolished at a cost of $40,700 A new building was constructed for $331,500 plus the following costs Excavation fees $37,700 Architectural design fees 10,900 Building permit fee 2,500 Imputed interest on funds used during construction (stock financing) 8,400 The building was completed and occupied on September 30, 2020 3 A third tract of land (site number 623) was acquired for $651,900 and was put on the market for resale 4 During December 2020, costs of $88,800 were incurred to improve leased office space The related lease will 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 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 $86,900, freight costs were $3,300, installation costs were $2,400, and royalty payments for 2020 were $17,700 (a) Calculate the balance at December 31, 2020 in each of the following balance sheet accounts Disregard the related accumulated depreciation accounts Balance at December 31, 2020 Land Buildings Leasehold Improvements Equipment

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At December 31, 2019, certain accounts included in the property, plant, and equipment section of Novak Companys balance sheet had the following balances. Land $234,400

At December 31, 2019, certain accounts included in the property, plant, and equipment section of Novak Companys balance sheet had the following balances.

Land		$234,400
Buildings		894,700
Leasehold improvements		662,800
Equipment		881,800

During 2020, the following transactions occurred.

1.		Land site number 621 was acquired for $852,200. In addition, to acquire the land Novak paid a $54,100 commission to a real estate agent. Costs of $40,800 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $20,800.
2.		A second tract of land (site number 622) with a building was acquired for $419,500. The closing statement indicated that the land value was $299,600 and the building value was $119,900. Shortly after acquisition, the building was demolished at a cost of $40,700. A new building was constructed for $331,500 plus the following costs.

Excavation fees		$37,700
Architectural design fees		10,900
Building permit fee		2,500
Imputed interest on funds used during construction (stock financing)		8,400

The building was completed and occupied on September 30, 2020.

3.		A third tract of land (site number 623) was acquired for $651,900 and was put on the market for resale.
4.		During December 2020, costs of $88,800 were incurred to improve leased office space. The related lease will 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.		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 $86,900, freight costs were $3,300, installation costs were $2,400, and royalty payments for 2020 were $17,700.

(a) Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. Disregard the related accumulated depreciation accounts.