P10-1 (L01) Classification of Acquisition and Other Asset Costs At December 31, 2016, certain accounts included in the property, plant, and equipment section of Reagan Company's balance sheet had the following balances Land Buildings Leasehold improvements Machinery and equipment $ 230,000 890,000 660,000 875,000 During 2017, the following transactions occurred 1. Cost of land site number 621 acquired Commission to a real estate agent to acquire land Cost of clearing land Sale of timber and gravel that were recovered during the land clearing $ 850,000 51,000 35,000 13,000 2. Second tract of land (site number 622) with a building Land value as indicated on the closing statement Building value as indicated on the closing statement Cost of demolition of the building shortly after acquisition Cost of new building constructed Additional costs of constructing building: $ 420,000 300,000 120,000 41,000 330,000 Excavation fees Architectural design fees Building permit fees Imputed interest on funds used during construction (stock financing) 38,000 11,000 2,500 8,500 Sept. 30, 2017 Completion and occupancy date of building 3. Acquisition of a third tract of land (site number 623) (Put on the market for resale) 4. Costs of improving leased office during December 2017. The related lease will 650,000 $ 89,000 terminate on December 31, 2019, and is not expected to be renewed (Hint: Leasehold improvements should be handled in the same manner as land improvements.) Purchase of a group of new machines under a royalty agreement that provides for payment of royalties based on units of production for the machines 5. Invoice price of the machines Freight costs Installation costs Royalty payments for 2017 $ 87.000 3,300 2,400 17,500 (AICPA adapted) Instructions: (a) Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 2017 Land Buildings Leasehold Improvements quiomelated accumulated depreciatio Disregard the related accumulated depreciation accounts REAGAN COMPANY