Patricia Manufacturing Co. was incorporated on 1/2/17 but was unable to begin manufacturing activities until 8/1/20 because new factory facilities were not completed until that date. The Land and Buildings account at 12/31/20 per the books was as follows: Date Amount 1/31/20 $188,000 2/28/20 3,760 4/1/20 5,640 5/1/20 5,076 Item Land and dilapidated building Cost of removing building Legal fees Fire insurance premium payment Special tax assessment for streets Partial payment of new building construction Final payment on building construction General expenses Asset write-up 5/1/20 4.230 5/1/20 197,400 8/1/20 197.400 8/1/20 28,200 12/31/20 70,500 $700,206 Additional information: 1 2. 3. To acquire the land and building on 1/31/20, the company paid $94.000 cash and 1.000 shares of its common stock (par value = $100/share) which is very actively traded and had a fair value per share of $172. When the old building was removed, Patricia paid Kwik Demolition Co. $3,760, but also received $1,410 from the sale of salvaged material. Legal fees covered the following: Cost of organization $2,350 Examination of title covering purchase of land 1,880 Legal work in connection with the building construction 1.410 $5,640 4. 5. The fire insurance premium covered premiums for a three-year term beginning May 1, 2020. General expenses covered the following for the period 1/2/20 to 8/1/20. President's salary $18,800 Plant superintendent covering supervision of new building 9,400 $28,200 6 Because of the rising land costs, the president was sure that the land was worth at least $70,500 more than what it cost the company $28,200 6. Because of the rising land costs, the president was sure that the land was worth at least $70,500 more than what it cost the company Determine the proper balances as of 12/31/20 for a separate land account and a separate buildings account Land $ 222760 Buildings $