Problem 10-1 At December 31, 2016, certain accounts included in the property, plant, and equipment section of Marin Company's balance sheet had the following balances. Land $237,800 Buildings 898,600 Leasehold improvements 664,700 Equipment 883,700 During 2017, the following transactions occurred. 1. Land site number 621 was acquired for $856,900. In addition, to acquire the land Marin paid a $56,100 commission to a real estate agent. Costs of $42,800 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $22,800 2. A second tract of land (site number 622) with a building was acquired for $422,800. The closing s atement indicated that the land value was $302,400 and the building value was $120,400. Shortly after acquisition, the building was demolished at a cost of $41,100. A new building was constructed for $327,900 plus the following costs. Excavation fees $37,900 Architectural design fees 11,000 Building permit fee 2,400 Imputed interest on funds used during construction (stock financing 8,500 The building was completed and occupied on September 30, 2017. 3. A third tract of land (site number 623) was acquired for $6 800 and was put on the market for resale. 4. During December 2017, costs of $89,100 were incurred to improve leased office space. The related lease will terminate on December 31, 2019, and is not expected to be renewed. (Hint: Leasehold improvements should be handled in the same manner as land improvements.) 5. A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines The invoice price of the machines was $87,800, freight costs were $3,300, installation costs were $2,400, and royalty payments for 2017 were $17,300 (a) Calculate the balance at December 31, 2017 in each of the following balance sheet accounts. Disregard the related accumulated depreciation accounts. Balance at December 31, 2017 Land Buildings hold Improvements Lease