P10-7 Vidi Corporation, a private enterprise, made the following purchases related to its property, plant, and equ t, and equip- ment during its fiscal year ended December 31,2017. The company uses the straight-line method of depreciation fr l ts capital assets. I. In early January, Vidi issued 140,000 common shares in exchange for property consisting of land and a ware- f acquisition, a reliable, independent appraiser estimated that the fair value of the land and house. On the date o warehouse was $600,000 and S3 for the land and warehouse in a commercial $35,000. The most recent sale of Vidi's shares for S9 per share. 00,000, respectively. The seller had advertised a price of $860,000 or best offer retail magazine. Vidi paid a local real estate broker a finder's fee of took place a month prior when 15,000 common shares were sold 2. On March 31, the company acquired equipment on credit. The terms were $7,000 ts of$ 5,000 on March 31 for each of the next two years. The implicit interest rate was12% The equipment list price was $17,000. Additional costs that were incurred to install the equipment included S1,000 to tear An additional and replace a wall and S1,500 to rearrange existing equipment to make room for the new equipment $500 was spent to repair the equipment after it was dropped during installation During the year, the following events also occurred motor was purchased for S50,000 for a large grinding machine (original cost of the machine, s350,000, accumulated depreciation at the replacement date, $100,000). The motor will not improve the quality or quantity of production; however, it will extend the grinding machine's useful life from the current 8 years to 3. A new (ignore the IFRS requirement to estimate and remove the cost of the old motor). purchased a small building in a nearby town for $125,000 to use as a display and sales location. The assessed for $95,000, which consists of $68,000 for the 4. The company municipal tax assessment indicated that the property was building and $27,000 for the land. The building had been empty for six months and required considerable main- tenance work before it could be used. The following costs were incurred in 2017 prior to the company moving into the building on September 30: former owner's unpaid property taxes on the property for the previous year, nt year's (2017) taxes, S1,000, reshingling of roof, S,200, cost of hauling refuse out of the basement, leaning the outside walls and washing windows, $750, cost of painting inside walls, S3,170, and s. The company repaired the plumbing system in its factory for S35,000. The original plumbing costs were not 6. On June 30, the company replaced a freezer with a new one that cost S20,000 cash (fair value of $21,000 for the S230; cost of spray-c incremental fire and liability insurance for 15 months starting September 30, $940. known. new freezer less trade-in value of the old freezer). The cost of the old freezer was $15,000. At the beginning of the year, the company had depreciated 60% of the old freezer, that is, 10% per year of use. 7. The company painted the factory exterior at a cost of $12,000. Instructions (a) Prepare the journal entries that are required to record the acquisitions and/or costs incurred in the above transactions In the case of present value calculations, use any of the three methods (tables, financial calculator, or Excel). (b) If there are alternative methods to account for any of the transactions, indicate what the alternatives are and your reason for choosing the method that you used. P10-7 Vidi Corporation, a private enterprise, made the following purchases related to its property, plant, and equ t, and equip- ment during its fiscal year ended December 31,2017. The company uses the straight-line method of depreciation fr l ts capital assets. I. In early January, Vidi issued 140,000 common shares in exchange for property consisting of land and a ware- f acquisition, a reliable, independent appraiser estimated that the fair value of the land and house. On the date o warehouse was $600,000 and S3 for the land and warehouse in a commercial $35,000. The most recent sale of Vidi's shares for S9 per share. 00,000, respectively. The seller had advertised a price of $860,000 or best offer retail magazine. Vidi paid a local real estate broker a finder's fee of took place a month prior when 15,000 common shares were sold 2. On March 31, the company acquired equipment on credit. The terms were $7,000 ts of$ 5,000 on March 31 for each of the next two years. The implicit interest rate was12% The equipment list price was $17,000. Additional costs that were incurred to install the equipment included S1,000 to tear An additional and replace a wall and S1,500 to rearrange existing equipment to make room for the new equipment $500 was spent to repair the equipment after it was dropped during installation During the year, the following events also occurred motor was purchased for S50,000 for a large grinding machine (original cost of the machine, s350,000, accumulated depreciation at the replacement date, $100,000). The motor will not improve the quality or quantity of production; however, it will extend the grinding machine's useful life from the current 8 years to 3. A new (ignore the IFRS requirement to estimate and remove the cost of the old motor). purchased a small building in a nearby town for $125,000 to use as a display and sales location. The assessed for $95,000, which consists of $68,000 for the 4. The company municipal tax assessment indicated that the property was building and $27,000 for the land. The building had been empty for six months and required considerable main- tenance work before it could be used. The following costs were incurred in 2017 prior to the company moving into the building on September 30: former owner's unpaid property taxes on the property for the previous year, nt year's (2017) taxes, S1,000, reshingling of roof, S,200, cost of hauling refuse out of the basement, leaning the outside walls and washing windows, $750, cost of painting inside walls, S3,170, and s. The company repaired the plumbing system in its factory for S35,000. The original plumbing costs were not 6. On June 30, the company replaced a freezer with a new one that cost S20,000 cash (fair value of $21,000 for the S230; cost of spray-c incremental fire and liability insurance for 15 months starting September 30, $940. known. new freezer less trade-in value of the old freezer). The cost of the old freezer was $15,000. At the beginning of the year, the company had depreciated 60% of the old freezer, that is, 10% per year of use. 7. The company painted the factory exterior at a cost of $12,000. Instructions (a) Prepare the journal entries that are required to record the acquisitions and/or costs incurred in the above transactions In the case of present value calculations, use any of the three methods (tables, financial calculator, or Excel). (b) If there are alternative methods to account for any of the transactions, indicate what the alternatives are and your reason for choosing the method that you used