Pina Colada 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, Pina Colada's controller, review the following transactions: Transaction 1 On June 1, 2020, Pina Colada purchased equipment from Venghaus Corporation. Pina Colada issued a $20,500, 4-year, non-interest-bearing note to Venghaus for the new equipment. Pina Colada 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 $460 and installation costs of $370 were incurred in completing this transaction. The new equipment qualifies for a $1,970 government grant. Transaction 2 On December 1, 2020, Pina Colada purchased several assets of Haukap Shoes Inc., a small shoe manufacturer whose owner was retiring. The purchase amounted to $209,800 and included the assets in the following list. Pina Colada engaged Tennyson Appraisal Inc., an independent appraiser, to determine the assets' fair values, which are also provided. Inventory Land Building Haukap Book Value $59,520 39,530 69,790 $168,840 Fair Value $49,800 79,680 119,520 $249,000 During its fiscal year ended May 31, 2021, Pina Colada incurred $7,870 of interest expense to finance these assets. Transaction 3 On March 1, 2021, Pina Colada traded in four units of specialized equipment and paid an additional $24,780 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 $34,590, as Pina Colada had recorded $44,640 of accumulated depreciation against these assets. Pina Colada's controller and the sales manager of the supplier company agreed that the new equipment had a fair value of $63,750. (61) For each of the three transactions described above, determine the value at which Pina Colada 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, e.g. 1.25124 and final answers to o decimal places, e.g. 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. Transaction 1: Equipment Transaction 2: Inventory Land Building Transaction 3: Machine Pina Colada 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, Pina Colada's controller, review the following transactions: Transaction 1 On June 1, 2020, Pina Colada purchased equipment from Venghaus Corporation. Pina Colada issued a $20,500, 4-year, non-interest-bearing note to Venghaus for the new equipment. Pina Colada 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 $460 and installation costs of $370 were incurred in completing this transaction. The new equipment qualifies for a $1,970 government grant. Transaction 2 On December 1, 2020, Pina Colada purchased several assets of Haukap Shoes Inc., a small shoe manufacturer whose owner was retiring. The purchase amounted to $209,800 and included the assets in the following list. Pina Colada engaged Tennyson Appraisal Inc., an independent appraiser, to determine the assets' fair values, which are also provided. Inventory Land Building Haukap Book Value $59,520 39,530 69,790 $168,840 Fair Value $49,800 79,680 119,520 $249,000 During its fiscal year ended May 31, 2021, Pina Colada incurred $7,870 of interest expense to finance these assets. Transaction 3 On March 1, 2021, Pina Colada traded in four units of specialized equipment and paid an additional $24,780 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 $34,590, as Pina Colada had recorded $44,640 of accumulated depreciation against these assets. Pina Colada's controller and the sales manager of the supplier company agreed that the new equipment had a fair value of $63,750. (61) For each of the three transactions described above, determine the value at which Pina Colada 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, e.g. 1.25124 and final answers to o decimal places, e.g. 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. Transaction 1: Equipment Transaction 2: Inventory Land Building Transaction 3: Machine