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

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Cullumber Industries purchased the following assets and constructed a building as well. All this was done during the current Assets 1 and 2: These assets were purchased as a lump sum for $240,000 cash. The following information was gathered Initial Cost on Seller's Books $240,000 144,000 Depreciation to Date on Seller's Books Book Value on Seller's Books $120,000 120,000 Description Appraised Value $120,000 24,000 $216,000 72,000 Equipment Asset 3: This machine was acquired by making a $24,000 down payment and issuing a $72,000, 2-year, zero-interest-bearing note. The note is to be paid off in two $36,000 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $86,160 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 240,000 96,000 192,000 24,080 168,000 Fair value of machinery acquired Asset 5: Equipment was acquired by issuing 100 shares of $19 par value common stock. The stock had a market price of $26 per share. Construction of Building: A building was constructed on land purchased last year at a cost of $360,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows. Pay Date 2/1 $288,000 6/1 864,000 9/1 1,152,000 11/1 240,000 To finance construction of the building a $1,440,000 12% construction loan was taken out on February 1 The loan was repaid on November 1. The firm had $480,000 of other outstanding debt during the year at a borrowing rate of 8%. Record the acquisition of each of these assets. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to O decimal places e.g 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)

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