Novak Corporation manufactures ballet shoes and is in a period of sustained growth. In an effort to expand its production capacity to meet the increased demand for its products, the company recently made several acquisitions of plant and equipment. Tanya Mullinger, newly hired with the title Capital Asset Accountant, requested that Walter Kaster, Novak's controller, review the following transactions: Transaction 1 On June 1, 2020, Novak purchased equipment from Venghaus Corporation. Novak issued a $20,500, 4-year, non-interest-bearing note to Venghaus for the new equipment. Novak will pay off the note in 4 equal instalments due at the end of each of the next 4 years. At the transaction date, the prevailing market interest rate for obligations of this nature was 10%. Freight costs of $310 and installation costs of $520 were incurred in completing this transaction. The new equipment qualifies for a $1,730 government grant. Transaction 2 On December 1, 2020, Novak purchased several assets of Haukap Shoes Inc., a small shoe manufacturer whose owner was retiring. The purchase amounted to $209,500 and included the assets in the following list. Novak engaged Tennyson Appraisal Inc., an independent appraiser, to determine the assets' fair values, which are also provided. Haukap Book Value Fair Value Inventory $59.930 $49,920 Land 39,500 79,872 Building 69.910 119,808 $169,340 $249,600 During its fiscal year ended May 31, 2021, Novak incurred $7.770 of interest expense to finance these assets. Transaction 3 On March 1, 2021, Novak traded in four units of specialized equipment and paid an additional $24,710 cash for a technologically up- to-date machine that should do the same job as the other machines, but much more efficiently and profitably. The equipment that was traded in had a combined carrying amount of $34,760, as Novak had recorded $44,840 of accumulated depreciation against these assets. Novak's controller and the sales manager of the supplier company agreed that the new equipment had a fair value of $63,870. (b1) For each of the three transactions described above, determine the value at which Novak Corporation should record the acquired assets. For any measurement involving present value concepts, provide your calculations using any of the following: tables, Excel functions, or a financial calculator. (Do not round intermediate calculations. Round factor values to 5 decimal places, eg. 1.25124 and final answers to O decimal places, eg. 5,275. The tables in this problem are to be used as a reference for this problem.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1