Problem 10 1 At December 31, 2016, certain accounts included in the property, plant, and equipment section of Monty Companys balance sheet had the following balances Land $239,000 Buildings 901,400 Leasehold improvements 660,000 Equipment 882,000 During 2017, the following transactions occurred 1 Land site number 621 was acquired for $859,100 In addition, to acquire the land Monty paid a $51,100 commission to a real estate agent Costs of $44,400 were incurred to clear the land During the course of clearing the land, timber and gravel were recovered and sold for $14,600 2 A second tract of land (site number 622) with a building was acquired for $416,400 The closing statement indicated that the land value was $297,200 and the building value was $119,200 Shortly after acquisition, the building was demolished at a cost of $40,700 A new building was constructed for $329,300 plus the following costs Excavation fees $38,300 Architectural design fees 11,100 Building permit fee 2,500 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 $656,300 and was put on the market for resale 4 During December 2017, costs of $88,300 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 $86,900, freight costs were $3,400, installation costs were $2,400, and royalty payments for 2017 were $17,400 (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 $ Leasehold Improvements $ Equipment $

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Problem 10-1 At December 31, 2016, certain accounts included in the property, plant, and equipment section of Monty Companys balance sheet had the following balances.

Problem 10-1

At December 31, 2016, certain accounts included in the property, plant, and equipment section of Monty Companys balance sheet had the following balances.

Land		$239,000
Buildings		901,400
Leasehold improvements		660,000
Equipment		882,000

During 2017, the following transactions occurred.

1.		Land site number 621 was acquired for $859,100. In addition, to acquire the land Monty paid a $51,100 commission to a real estate agent. Costs of $44,400 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $14,600.
2.		A second tract of land (site number 622) with a building was acquired for $416,400. The closing statement indicated that the land value was $297,200 and the building value was $119,200. Shortly after acquisition, the building was demolished at a cost of $40,700. A new building was constructed for $329,300 plus the following costs.

Excavation fees		$38,300
Architectural design fees		11,100
Building permit fee		2,500
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 $656,300 and was put on the market for resale.
4.		During December 2017, costs of $88,300 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 $86,900, freight costs were $3,400, installation costs were $2,400, and royalty payments for 2017 were $17,400.

(a) Calculate the balance at December 31, 2017 in each of the following balance sheet accounts. Disregard the related accumulated depreciation accounts.