PLEASE NOTE ONLY NEED ASSISTANCE WITH SECTION (B) (b) List the items in the fact situation that were not used to determine the answer to (a), showing the pertinent amounts and supporting computations in good form for each item. In addition, indicate where, or if, these items should be included in Lobos financial statements.)

Selected accounts included in the property, plant, and equipment section of Lobo Corporations balance sheet at December 31, 2013, had the following balances.

Land	$ 300,000
Land improvements	140,000
Buildings	1,100,000
Equipment	960,000

During 2014, the following transactions occurred.

1. A tract of land was acquired for $150,000 as a potential future building site.

2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 20,000 shares of Lobos common stock. On the acquisition date, Lobos stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendotas books at $110,000 for land and $320,000 for the building at the exchange date. Current appraised values for the land and building, respectively, are $230,000 and $690,000.

3. Items of machinery and equipment were purchased at a total cost of $400,000. Additional costs were incurred as follows.

Freight and unloading	$13,000
Sales taxes	20,000
Installation	26,000

4. Expenditures totaling $95,000 were made for new parking lots, streets, and sidewalks at the corporations various plant locations. These expenditures had an estimated useful life of 15 years.

5. A machine costing $80,000 on January 1, 2006, was scrapped on June 30, 2014. Double-declining-balance depreciation has been recorded on the basis of a 10-year life.

6. A machine was sold for $20,000 on July 1, 2014. Original cost of the machine was $44,000 on January 1, 2011, and it was depreciated on the straight-line basis over an estimated useful life of 7 years and a salvage value of $2,000.

Instructions

(Round to the nearest dollar.)

(a) Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 2014.

Land	Buildings
Land Improvements	Equipment

(Hint: Disregard the related accumulated depreciation accounts.)

(b) List the items in the fact situation that were not used to determine the answer to (a), showing the pertinent amounts and supporting computations in good form for each item. In addition, indicate where, or if, these items should be included in Lobos financial statements.