Problem 10-2

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

Land		$330,000
Land improvements		154,000
Buildings		1,210,000
Equipment		1,056,000

During 2017, the following transactions occurred.

1.		A tract of land was acquired for $165,000 as a potential future building site.
2.		A plant facility consisting of land and building was acquired from Mendota Company in exchange for 22,000 shares of Flounders common stock. On the acquisition date, Flounders stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendotas books at $121,000 for land and $352,000 for the building at the exchange date. Current appraised values for the land and building, respectively, are $253,000 and $759,000.
3.		Items of machinery and equipment were purchased at a total cost of $440,000. Additional costs were incurred as follows.

Freight and unloading		$14,300
Sales taxes		22,000
Installation		28,600

4.		Expenditures totaling $104,500 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 $88,000 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 $22,000 on July 1, 2017. Original cost of the machine was $48,400 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 $2,200.

(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	$