PLUS klo Intermediate Accounting, 170 URCES BACK Study CALCULATOR PRINTER VERSION NEXT Excercise 10-16 your answer is partially correct. Try again Vaughn Industries purchased the following assets and constructed a building as well. At was done during the current year Assets 1 and 2: These assets were purchased as a fumo sum for 150.000 cash. The following information was gathered Initial Cost on Depreciation te Book Value on Description Seller's Books Date on Seller's Books Seller's Books Appraised Value Machinery $150,000 $75,000 $75,000 $135,000 Equipment 90,000 15,000 75,000 45,000 Asset This machine was acquired by making a $15,000 down payment and sung a $45,000, 2-year Zero-interest-bearing note. The note is to be paid off in two $22.500 instaliments made the end of the first and second years. It was estimated that the asset could have been purchased right for $53,850 Asset 4: This machinery was acquired by trading in und machinery, (The exchange laces commercial substance) Facts concerning the trade in are as follows Cost of machinery traded $150,000 Accumulated depreciation to date of sale 60.000 ir ve of machinery traded Cas received 15,000 Fair value of machinery acquired 105,000 Asset : Tament was acquired by 100 shares of $12 par value to The tek a market price of per share. Construction of Building! A building was constructed on and purchased last year at a cost of $225.000. Construction began on February 1 and was completed on November. The payments to the contractor were as follows: Date Payment 2/1 $180,000 6/1 540,000 720,000 1111 150,000 To finance construction of the building a $900,000, 12 construction loan was taken out on February 1. The loan was repaid on November 1. The firm had $300,000 of other outstanding debt during the year at a borrowing rate of 8% LUS Me, Intermediate Accounting, 172 URCES CALCULATOR PRINTER VERSION BACK NET Record the acquisition of each of these assets. (Round intermediate calculations to 5 decimal places 1.25124 and final answer to decimal places eg. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Tities and Explanation Debit Credit Acquisition of Assets 1 and 2 Machinery 112,500 Equipment 37.500 150,000 Acquisition of Assets Machinery 53.850 Discount on Notes Payable 6,150 Case 15.000 45.000 Notes Payable Acquisition of Asset 4 Imachinery 120.000 Accumulate Depreciation 60,000 15,000 150,000 Machinery 45.000 Gain of M Acquisition of Assets 1,200 10. Jun 22-ACET 373 - INTERMEDIATE Wius 10. Answers Daily Conect. Ce PLUS Kleso, Intermediate Accounting, 17 Help System Announcements CALCULATOR PRINTER VERSION BACK NET ESOURCES Accumulated Depreciation 60.000 Cash 15,000 - Machinery 150,000 13 45,000 19 23 Canon Disposal of Man Acquisition of Assets Equonant 1,700 by Study Common St 1.200 500 Pad-in Capital in Exces (To record of Omice Equipment) Buildings 1.667.850 225.000 1.815.000 Therest 77.850 Click if you would like to show Work for this question Doen Show Work LIST OF ACCOUNTS LE TO TERT