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I was wondering if you could assist me with some guidance on this question in my textbook.

Attached you will find the problem that I am struggling with. Had to scan it as 2 separate images.

542 Chapter 10 Acquisition and Disposition of Property. Plant, and Equipment 2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 20,000 shares of Lobo's common stock. On the acquisition date, Lobo's stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendota's books at $110,000 for land and $320,000 for the building at the ex- change date. Current appraised values for the land and building, respectively, are $230,000 and $690,000. 3. Items of machinery and equipment were purchased at a total cost of $400,000. Additional costs were incurred as follows. Freight and unloading $13,000 Sales taxes 20,000 Installation 26,000 4. Expenditures totaling $95,000 were made for new parking lots, streets, and sidewalks at the corporation's various plant locations. These expenditures had an estimated useful life of 15 years. 5. A machine costing $80,000 on January 1, 2009, was scrapped on June 30, 2017. Double-decliningbalance depreciation has been recorded on the basis of a 10-year life. 6. A machine was sold for $20,000 on July 1, 2017. Original cost of the machine was $44,000 on January 1, 2014, and it was depreciated on the straight-line basis over an estimated useful life of 7 years and a salvage value of $2,000. Instructions (Round to the nearest dollar.) (a) Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 2017. Land Buildings Land Improvements Equipment (Hint: Disregard the related accumulated depreciation accounts.) (b) List the items in the fact situation that were not used to determine the answer to (a), showing the pertinent amounts and supporting computations in good form for each item. In addition, indicate where, or if, these items should be included in Lobo's financial statements. (AICPA adapted) P10-3 (L01 ,2,4) (Classification of Land and Building Costs) Spitre Company was incorporated on January 2, 2018, but was unable to begin manufacturing activities until July 1, 2018, because new factory facilities were not completed until that date. The Land and Buildings account reported the following items during 2018. January 31 Land and buildings $160,000 February 28 Cost of removal of building 9,800 May 1 Partial payment of new construction 60,000 May 1 Legal fees paid 3,770 June 1 Second payment on new construction 40,000 June 1 Insurance premium 2,280 June 1 Special tax assessment 4,000 June 30 General expenses 36,300 July 1 Final payment on new construction 30,000 December 31 Asset writeup 53,800 399,950 December 31 Depreciation2018 at 1% (4,000) December 31, 2018 Account balance $395,950 The following additional information is to be considered. 1. To acquire land and building, the company paid $80,000 cash and 800 shares of its 8% cumulative preferred stock, par value $100 per share. Fair value of the stock is $117 per share. 2. Cost of removal of old buildings amounted to $9,800, and the demolition company retained all materials of the building. 3. Legal fees covered the following. Cost of organization $ 610 Examination of title covering purchase of land 1,300 Legal work in connection with construction contract 1,860 $3,770 4. Insurance premium covered the building for a 2year term beginning May 1, 2018. Problems 543 5. The special tax assessment covered street improvements that are permanent in nature. 6. General expenses covered the following for the period from January 2, 2018, to June 30, 2018. President's salary $32,100 Plant superintendent's salarysupervision of new building 4,200 $36,300 7. Because of a general increase in construction costs after entering into the building contract, the board of directors increased the value of the building $53,800, believing that such an increase was justified to reect the current market at thetime the building was completed. Retained earnings was credited for this amount. ' 8. Estimated life of building50 years. Depreciation for 20181/o of asset value (1% of $400,000, or $4,000). Instructions (a) Prepare entries to reect correct land, buildings, and depreciation accounts at December 31, 2018. (b) Show the proper presentation of land, buildings, and depreciation on the balance sheet at December 31, 2018. (AICPA adapted) P10-4 (L01 ,4,6) GROUPWORK (Dispositions, Including Condemnation, Demolition, and Trade-In) Presented below is a schedule of property dispositions for Hollerith Co. ________,___,__ Schedule of Property Dispositions _________"_____4 Accumulated Cash Fair Nature of Cost Depreciation Proceeds Value Disposition Land $40,000 $31,000 $31,000 Condemnation Building 15,000 - 3,600 Demolition Warehouse 70,000 $16,000 74,000 74,000 Destruction by fire Machine 8,000 2,800 900 7,200 Trade-in \\'4 Furniture 10,000 7,850 - 3,100 Contribution Automobile 9,000 3,460 2,960 2,960 Sale M The following additional information is available. Land: On February 15, a condemnation award was received as consideration for unimproved land held primarily as an in- vestment, and on March 31, another parcel of unimproved land to be held as an investment was purchased at a cost of $35,000. Building: On April 2, land and building were purchased at a total cost of $75,000, of which 20% was allocated to the building . ' on the corporate books. The real estate was acquired with the intention of demolishing the building, and this was accom- plished during the month of November. Cash proceeds received in November represent the net proceeds from demolition of the building. Warehouse: On lune 30, the warehouse was destroyed by fire. The warehouse was purchased Ianuary 2, 2014, and had de- preciated $16,000. On December 27, the insurance proceeds and other funds were used to purchase a replacement warehouse at a cost of $90,000. Machine: On December 26, the machine was exchanged for another machine having a fair value of $6,300 and. cash of $900 was received. (The exchange lacks commercial substance.) Furniture: On August 15, furniture was contributed to a qualied charitable organization. No other contributions were made or pledged during the year. Automobile: On November 3, the automobile was sold to Jared Winger, a stockholder. Instructions Indicate how these items would be reported on the income statement of Hollerith Co. (AICPA adapted) V P10-5 (L01 ,3) EXCEL (Classification of Costs and Interest Capitalization) On January 1, 2017, Blair Corporation purchased for $500,000 a tract of land (site number 101) with a building. Blair paid a real estate broker's commission of $36,000, legal fees of $6,000, and title guarantee insurance of $18,000. The closing statement indicated that the land value was $500,000 and the building value was $100,000. Shortly after acquisition, the building was razed at a cost of $54,000