Pinky Corp is a shoe manufacturer which is experiencing a period of continuous growth. In an effort to expand its production capacity to meet the increasing demand for its products, the company has recently made several acquisitions of plants and equipment. An accountant has just been recruited to review the following transactions:

On June 1, 2019, Pinky Corp bought equipment from Wyagant Ltd. Pinky Corp issued an interest-free note worth $ 28,000 to Wyagant Ltd for the new equipment. Pinky Corp will pay the notes in the same four installments because at the end of each of the next 4 years. At the transaction date, the prevailing market interest rate for such obligations is 10%. a shipping fee of $ 425 and an installation fee of $ 500 were incurred to complete transaction.

A. For the transaction described above, determine how much value should be recorded by Pinky Corp to record the assets obtained.

B. Then Pinky Corp also has other transactions namely:

Buildings worth $ 500,000 to buy and sell

Paying patents for a trademark for shoes produced valued at $ 100,000

For these transactions should they be classified as PPE? If so, why? And if not, explain why? Then whether identification is the right classification for the transaction.