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Blossom Industries purchased the following assets and constructed a building as well. All this was done during the current year. Assets 1 and 2 These

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Blossom Industries purchased the following assets and constructed a building as well. All this was done during the current year. Assets 1 and 2 These assets were purchased as a lump sum for $171,120 cash. The following information was gathered: Asset 3 This machine was acquired by making a $23,000 down payment and issuing a $69,000,1-year, zero-Interest bearing note. The note is to be paid off in at the end of the first year. It was estimated that the asset could have been purchased outright for $83,720 Asset 4 This machinery was acquired by trading in used machinery. (The exchanse lacks commerciat substance.) Facts conceming the trade-in are as follows: Asset: Machinery was acquired by issuing 1,000 shares of 51 par value common stock. The stock was actively traded and had a market value of $ bor ther thare. Construction of Buliding A boilding was constructed on land purchased last year at a cost of 5110,400. Construction began on March 1 and was compoteded on September 1 . The payments to the contractor were as follow: Tofinsence cocstruction of the building, a 5552,000,10k comstruction loan was taken out on March.1. The loan was repuid on september 1. The firm had $366,000 of other outstanding deht durine the year at a borrowite rate of 124 decimal places, ef 1.25124 and benal anwer to o decimal places es 55,971 . Credit account titles are aufometicalfy. indented when ampunt is entered, Do not indent menwolly. if no entry is requiredi select "No Entry" for the account tirlei and enter of for the amounts. Account Titles and Explanation Debit Credit Acquisition of Assets 1 and 2 Acquisition of Asset 3 Acoulsition of Asset 4 Acquisition of Asset 4 Acquisition of Asset 5 (To record machinery) Acquisition of Asset 5 (To record machinery) (To record land and buildings)

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