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Problem 2 (25 points). Tangerine Company had the following transactions relating to property, plant, and equipment assets for the year ending December 31, 20X5. TANGERINE

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Problem 2 (25 points). Tangerine Company had the following transactions relating to property, plant, and equipment assets for the year ending December 31, 20X5. TANGERINE COMPANY TRANSACTIONS FOR PROPERTY, PLANT, AND EQUIPMENT ASSETS FOR YEAR ENDING DECEMBER 31, 20x5 (a) |A lot was purchased for S10.000 cash down and a noninterest bearing promissory note fo $20,000 due in two years. The company's normal borrowing rate is 10%. The transaction took place on January 3, 20x5 (b) | The company borrowed on January 1, 20X5, s300,000 at 9% for 10 years to finance the construction of a new office building. The company must pay interest on December 31 of each year. The three year construction project began on January 1, 20X5, and the average accumulated expenditures for the year were $90,000, which is also the total amount of expenditures for the year (e) Land that was carried on the company's books for $20,000 (appraised value of $25,000) was exchanged for a computer with a book value on the other company's books at $30,000. The original cost to the other company was $35,000 and the current appraised value of the computer is $26,000. The transaction was considered to have commercial substance. (d) The company traded equipment with a book value of $21,000 (original cost of $30,000, fair market value of $25,000) and received cash of S10,000 plus similar equipment with a fair market value of $15,000. The transaction was considered to lack commercial substance. (e) |The city in which the company is located agreed to donate property to the company if the (f) The company had its warchouse facilities sandblasted and painted at a total cost of $25,000. (g) The company replaced the roof on its office facilities at a cost of $40,000. The company company would consider expanding its business in the city rather than moving out of the city to locate their new headquarters. The land was recently appraised for $500,000. This amount was paid in cash will pay the bill next month REQUIRED: Prepare all general journal entries required, in proper general j the information provided above. Omit explanations. Use the letter of the transaction as the date

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