Problem#1

PharoahCo. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020.

Purchase
Cash paid for equipment, including sales tax of $6,300		$132,300
Freight and insurance cost while in transit		2,520
Cost of moving equipment into place at factory		3,906
Wage cost for technicians to test equipment		5,040
Insurance premium paid during first year of operation on this equipment		1,890
Special plumbing fixtures required for new equipment		10,080
Repair cost incurred in first year of operations related to this equipment		1,638
Construction
Material and purchased parts (gross cost $252,000; failed to take2% cash discount)		$252,000
Imputed interest on funds used during construction (stock financing)		17,640
Labor costs		239,400
Allocated overhead costs (fixed-$25,200; variable-$37,800)		63,000
Profit on self-construction		37,800
Cost of installing equipment		5,544

Compute the total cost to be capitalized for each of these two pieces of equipment.

Purchase equipment		$enter a dollar amount
Construction equipment		$

Problem #2

The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses.

(a)		Money borrowed to pay building contractor (signed a note)		$(292,700	)
(b)		Payment for construction from note proceeds		292,700
(c)		Cost of land fill and clearing		10,240
(d)		Delinquent real estate taxes on property assumed by purchaser		7,220
(e)		Premium on 6-month insurance policy during construction		9,900
(f)		Refund of 1-month insurance premium because construction completed early		(1,650	)
(g)		Architect's fee on building		25,360
(h)		Cost of real estate purchased as a plant site (land $206,100and building $55,700)		261,800
(i)		Commission fee paid to real estate agency		8,720
(j)		Installation of fences around property		4,310
(k)		Cost of razing and removing building		12,100
(l)		Proceeds from salvage of demolished building		(5,100	)
(m)		Interest paid during construction on money borrowed for construction		11,850
(n)		Cost of parking lots and driveways		18,640
(o)		Cost of trees and shrubbery planted (permanent in nature)		15,130
(p)		Excavation costs for new building		2,940

Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title.

Item		Land		Land Improvements		Building		Other Accounts
(a)		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		enter an account title
(b)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(c)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(d)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(e)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(f)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(g)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(h)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(i)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(j)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(k)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(l)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(m)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(n)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(o)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter an account title
(p)		enter a dollar amount		enter a dollar amount

Problem 3

Coronado Industriespurchased equipment for $31600. Sales tax on the purchase was $1450. Other costs incurred were freight charges of $360, repairs of $600for damage during installation, and installation costs of $410. What is the cost of the equipment?

Problem 4

SheffieldFootball Co. had a player contract with Watts that is recorded in its books at $8430000on July 1, 2020.IvanhoeFootball Co. had a player contract with Kurtz that is recorded in its books at $11150000on July 1, 2020. On this date,Sheffieldtraded Watts toIvanhoefor Kurtz and paid a cash difference of $1115000. The fair value of the Kurtz contract was $12600000on the exchange date. The exchange had no commercial substance. After the exchange, the Kurtz contract should be recorded inSheffield's books at

Problem#5

Blossom Companytraded machinery with a book value of $600000and a fair value of $950000. It received in exchange fromCrane Companya machine with a fair value of $855000and cash of $95000.Crane's machine has a book value of $902500. What amount of gain shouldBlossomrecognize on the exchange (assuming lack of commercial substance)?