Monty 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 $300,000 cash. The following information was gathered. Initial Cost on Description Seller's Books Depreciation to Date on Seller's Books Book Value on Seller's Books Appraised Value Machinery $300,000 Equipment 180,000 $150,000 $150,000 30,000 150,000 $270,000 90,000 Asset 3: This machine was acquired by making a $30,000 down payment and issuing a $90,000, 2-year, zero-interest-bearing note. The note is to be paid off in two $45,000 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $107,700. 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 $300,000 Accumulated depreciation to date of sale 120,000 Fair value of machinery traded 240,000 Cash received 30,000 Fair value of machinery acquired 210,000 Asset 5: Equipment was acquired by issuing 100 shares of $24 par value common stock. The stock had a market price of $33 per share. Construction of Building: A building was constructed on land purchased last year at a cost of $450,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows. Construction of Building: A building was constructed on land purchased last year at a cost of $450,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows. Date Payment 2/1 $360,000 6/1 1,080,000 9/1 1,440,000 11/1 300,000 To finance construction of the building, a $1,800,000, 12% construction loan was taken out on February 1. The loan was repaid on November 1. The firm had $600,000 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.) Account Titles and Explanation Acquisition of Assets 1 and 2 Machinery Equipment Cash Acquisition of Asset 3 Debit 225000 75000 Credit 300000 Acquisition of Asset 3 Machinery Interest Expense Cash Notes Payable Acquisition of Asset 4 Equipment Cash Gain on Disposal of Machinery Machinery Paid-in Capital in Excess of Par - Common Stock Acquisition of Asset 5 Equipment Common Stock Paid-in Capital in Excess of Par - Common Stock 107700 12300 210000 30000 3300 30000 90000 60000 180000 2400 900 Paid-in Capital in Excess of Par - Common Stock Acquisition of Asset 5 Equipment Common Stock Paid-in Capital in Excess of Par - Common Stock (To record acquisition of Office Equipment) 3300 488700 180000 2400 900