Problem 10-2

Selected accounts included in the property, plant, and equipment section of Stellar Corporations balance sheet at December 31, 2016, had the following balances.

Land		$444,000
Land improvements		207,200
Buildings		1,628,000
Equipment		1,420,800

During 2017, the following transactions occurred.

1.		A tract of land was acquired for $222,000 as a potential future building site.
2.		A plant facility consisting of land and building was acquired from Mendota Company in exchange for 29,600 shares of Stellars common stock. On the acquisition date, Stellars stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendotas books at $162,800 for land and $473,600 for the building at the exchange date. Current appraised values for the land and building, respectively, are $340,400 and $1,021,200.
3.		Items of machinery and equipment were purchased at a total cost of $592,000. Additional costs were incurred as follows.

Freight and unloading		$19,240
Sales taxes		29,600
Installation		38,480

4.		Expenditures totaling $140,600 were made for new parking lots, streets, and sidewalks at the corporations various plant locations. These expenditures had an estimated useful life of 15 years.
5.		A machine costing $118,400 on January 1, 2009, was scrapped on June 30, 2017. Double-declining-balance depreciation has been recorded on the basis of a 10-year life.
6.		A machine was sold for $29,600 on July 1, 2017. Original cost of the machine was $65,120 on January 1, 2014, and it was depreciated on the straight-line basis over an estimated useful life of 7 years and a salvage value of $2,960.

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

		Balance at December 31, 2017
Land		$
Land Improvements		$
Buildings		$
Equipment		$