Problem 10-1 At December 31, 2016, certain accounts induded in the property, plant, and equipment Land Buildings Leasehold improvements Equipment $239,300 895,600 663,700 875,800 During 2017, the following transactions occurred 1. Land site number 621 was acquired for $859,600. In addition, to acquire the land Sandhill paid a s51,900 commisslon to a clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $14,900. 2. A second tract of land (site number 622) with a building was acquired for $420,000. The closing statement The closing statement indicated that the land value was $299,900 and the building value was $120,100. Shortly after acquisition, the building was demolished at a cost of $41,100. A new building was constructed for $329,700 plus the following costs Excavation fees $38,400 10,900 2,400 Architectural design fees Building permit fee Imputed interest on funds used during construction (stock financing) 8,400 The building was completed and occupied on September 30, 203 3. A third tract of land (site number 623) was acqvuired for $652,500 and was put on the 4. During Decemb er 2017, costs of $89, 400 were incurred to improve leased office space. The related lease will terminate on renewed. (Hint: Leasehold improvements should be handled in the same manner as land i under a royalty agreement that provides for payment of royalties based on units of production for 2017 were $17,300