Problem 10-3 Stellar Company was incorporated on January 2, 2018, but was unable to begin manufacturing activities until July 1, 2018, because new factory facilities were not completed until that date. The Land and Buildings account reported the following items during 2018. January 31 February 28 May 1 May 1 June 1 June 1 June 1 June 30 July 1 December 31 Land and building Cost of removal of building Partial payment of new construction Legal fees paid Second payment on new construction Insurance premiumm Special tax assessment General expenses Final payment on new construction Asset write-up $169,100 9,958 62.410 4,230 47,100 2.280 4,350 39,020 32.150 52.829 423,427 December 31 Depreciation-2018 at 1% (4,066) December 31, 2018 Account balance $419,361 The following additional information is to be considered 1. To acquire land and building, the company paid $89,100 cash and 800 shares of its 8% cumulative preferred stock, par value $100 per share. Fair value of the stock is $118 per share. 2. Cost of removal of old buildings amounted to $9,958, and the demolition company retained all materials of the building. 3. Legal fees covered the following. Cost of organization Examination of title covering purchase of land Legal work in connection with construction contract $700 1,430 2,100 $4,230 4. Insurance premium covered the building for a 2-year term beginning May 1, 2018. 5. The special tax assessment covered street improvements that are permanent in nature. 6. General expenses covered the following for the period from January 2, 2018, to June 30, 2018. President's salary Plant superintendent's salary-supervision of new building 34,592 4,428 $39,020 7. Because of a general increase in construction costs after e into the building contract, the board of directors increased the value of the building $52,829, believing that such an increase was justified to reflect the current market at the time the building was completed. Retained earnings was credited for this amount. 8. Estimated life of building-50 years. Depreciation for 2018-1% of asset value( 1% of S406.600, or S4.066). No. Account Titles and Explanation Debit Credit 1. Land 199238 Buildings Insurance Expense Prepaid Insurance Organization Expense 570 1520 700 Retained Earnings Salaries and Wages Expense Land and Buildings 423427 Paid-in Capital in Excess of Par-Common Stock 14400 2. Land and Buildings 4066 Depreciation Expense Accumulated Depreciation-Buildings Your answer is partially correct. Try again. Show the proper presentation of land, buildings, and depreciation on the balance sheet at December 31, 2018. (Round answers to 0 decimal places, e.g. 5,275.) Stellar Company Balance Sheet December 31, 2018 Property, Plant, and Equipment Land 199238 Buildings Less Accumulated Depreciation-Buildings Total Property, Plant and Equipment Click if you would like to Show Work for this