Gibbs Manufacturing Co. was incorporated on 1/2/10 but was unable to begin manufacturing activities until 8/1/10 because new factory facilities were not completed until that date. The Land and Building account at 12/31/10 per the books was as follows: Date Item Amount 1/31/2010 Land and dilapidated building $200,000 2/28/2010 Cost of removing building 4,000 4/1/2010 Legal fees 6,000 5/1/2010 Fire insurance premium payment 5,400 5/1/2010 Special tax assessment for streets 4,500 5/1/2010 Partial payment of new building construction 150,000 8/1/2010 Final payment on building construction 150,000 8/1/2010 General expenses 30,000 12/31/2010 Asset write-up 75,000 $624,900 Additional information: 1. To acquire the land and building on 1/31/10, the company paid $100,000 cash and 1,000 shares of its common stock (par value = $100 / share) which is very actively traded and had a market value per share of $170. 2. When the old building was removed, Gibbs paid Kwik Demolition Co. $4,000, but also received $1,500 from the sale of salvaged material. 3. Legal fees covered the following: a. Cost of organization $2,500 b. Examination of title covering purchase of land 2,000 c. Legal work in connection with the building construction 1,500 $6,000 4. The fire insurance premium covered premiums for a three year term beginning May 1, 2010. 5. General expenses included the following the period 1/2/10 to 8/1/10. a. Presidents salary $20,000 b. Plant superintendent covering supervision of the new bldg 10,000 $30,000 6. Because of the rising land costs, the president is sure the land is worth $75,000 more than the purchase price. Instructions Determine the proper balances as of 12/31/10 for a separate land account and a building account. Use separate T-accounts (one for land and one for building) labeling all the relevant amounts and disclosing all computations