Problem $10-1($Static$)$ Acquisition costs $[$LO$10-1,10-2,10-3,10-4]$

Tristar Production Company began operations on September $1,2024.$ Listed below are a number of transactions that occurred during its first four months of operations.

On September $1,$ the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $$100,000$ in cash for the property. According to appraisals, the land had a fair value of $$75,000$ and the building had a fair value of $$45,000.$

On September $1,$ Tristar signed a $$40,000$ noninterest$-$bearing note to purchase equipment. The $$40,000$ payment is due on September $1,2025.$ Assume that $8\%$ is a reasonable interest rate.

On September $15,$ a truck was donated to the corporation. Similar trucks were selling for $$2,500.$

On September $18,$ the company paid its lawyer $$3,000$ for organizing the corporation.

On October $10,$ Tristar purchased equipment for cash. The purchase price was $$15,000$ and $$500$ in freight charges also were paid.

On December $2,$ Tristar acquired equipment. The company was short of cash and could not pay the $$5,500$ normal cash price. The supplier agreed to accept $200$ shares of the company's no$-$par common stock in exchange for the equipment. The fair value of the stock is not readily determinable.

On December $10,$ the company acquired a tract of land at a cost of $$20,000.$ It paid $$2,000$ down and signed a $10\%$ note with both principal and interest due in one year. Ten percent is an appropriate rate of interest for this note.

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