Gurrent Attempt in Progress Indigo 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 5208,320 cash. The following information was gathered: Asset 3 This machine was acquired by making a 528,000 down payment and issuing a $84,000,1-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 5101,920. Asset 4 This machinery was acquired by trading in used machinery. (The exchangelacks commerclal substance. Facts concerningthe trade-in are as follows. Asset 5 Machinery was acquired by issuing 1,000 shares of 51 par value commons stock. The stock was actively traded and had a market value: of 58 per share: Construction of gullding A beildingwas constructed on land purchased last year at a cost of $134.400. Construction began on March 1 and was completed on September 1. The payments to the contractor were as followis. To finance construction of the buitding a $672.000,10N construction loan was taken out on March 1. The loan was repaid on Septsmber 1 . The firm had \$449,000 of other outstanding debt during the year at a borrowing rate of 12% To finance combtruction of the building a 5672000,10 is constructionloae was takenout on Marchi. The loan was repaid on September 1 . The frm tad 5448000 of other outatanding debt during the year at a borrovirigrate of 120 fecord the acquitition of each of these assets, (Lht ell debit entsiss before creilt entries. Pound intermedisir coltulutiors to 5 decimat. Gurrent Attempt in Progress Indigo 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 5208,320 cash. The following information was gathered: Asset 3 This machine was acquired by making a 528,000 down payment and issuing a $84,000,1-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 5101,920. Asset 4 This machinery was acquired by trading in used machinery. (The exchangelacks commerclal substance. Facts concerningthe trade-in are as follows. Asset 5 Machinery was acquired by issuing 1,000 shares of 51 par value commons stock. The stock was actively traded and had a market value: of 58 per share: Construction of gullding A beildingwas constructed on land purchased last year at a cost of $134.400. Construction began on March 1 and was completed on September 1. The payments to the contractor were as followis. To finance construction of the buitding a $672.000,10N construction loan was taken out on March 1. The loan was repaid on Septsmber 1 . The firm had \$449,000 of other outstanding debt during the year at a borrowing rate of 12% To finance combtruction of the building a 5672000,10 is constructionloae was takenout on Marchi. The loan was repaid on September 1 . The frm tad 5448000 of other outatanding debt during the year at a borrovirigrate of 120 fecord the acquitition of each of these assets, (Lht ell debit entsiss before creilt entries. Pound intermedisir coltulutiors to 5 decimat