Concord Company, a manufacturer of ballet shoes, is experiencing a period of sustained growth. In an effort to expand its production capacity to meet the increased demand for its product, the company recently made several acquisitions of plant and equipment. Rob Joffrey, newly hired in the position of fixed-asset accountant, requested that Danny Nolte, Concord's controller, review the following transactions. Transaction 1: On June 1, 2025, Concord Company purchased equipment from Wyandot Corporation. Concord issued a $25,200,4- year, zero-interest-bearing note to Wyandot for the new equipment. Concord will pay off the note in four equal installments due at the end of each of the next 4 years. At the date of the transaction, the prevailing market rate of interest for obligations of this nature was 11%. Freight costs of $443 and installation costs of $460 were incurred in completing this transaction. The appropriate factors for the time value of money at a 11% rate of interest are given below. Future value of $1 for 4 periods 1.52 Future value of an ordinary annuity for 4 periods 4.71 Present value of $1 for 4 periods 0.66 Present value of an ordinary annuity for 4 periods 3.10 Transaction 2: On December 1, 2025, Concord Company purchased several assets of Yakima Shoes Inc., a small shoe manufacturer whose owner was retiring. The purchase amounted to $199,000 and included the assets listed below. Concord Company engaged the services of Tennyson Appraisal Inc., an independent appraiser, to determine the fair values of the assets which are also presented below. Yakima Book Value Fair Value Inventory Land $55,300 $50,000 39.200 85,000 Buildings 71,300 115,000 $165,800 $250,000 During its fiscal year ended May 31, 2026, Concord incurred $8,170 for interest expense in connection with the financing of these assets. Transaction 3: On March 1, 2026, Concord Company exchanged a number of used trucks plus cash for vacant land adjacent to its plant site. (The exchange has commercial substance.) Concord intends to use the land for a parking lot. The trucks had a combined book value of $33.890, as Concord had recorded $21.460 of accumulated depreciation against these assets. Concord's purchasing agent. who has had previous dealings in the secondhand market, indicated that the trucks had a fair value of $44,110 at the time of the transaction. In addition to the trucks, Concord Company paid $19,140 cash for the land.