PROBLEMS 10-1 (L01) EXCEL (Classification of Acquisiti in the property, plant, and equipment section of Reagan C her Asset Costs) At December 31,2016, certain accounts included ompany e sheet ha d the following Land Buildings Leasehold i Equipment During 2017, the following transactions occurred. 1. Land site number 621 was acquired for $850,000. In addition, to acquire the land Reagan paid a $51,000 commission to a real estate agent. Costs of $35,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $13,000. A second tract of land (site number 622) with a building was acquired for $420,000. The closing statement indicated that the land value was $300,000 and the building value was S120Shortly after acq at a cost of $41,000. A new building was constructed for $330,000 plus the following costs. 2. uisition, the building was demolished Excavation fees Architectural design fees Building permit fee Imputed interest on funds used 11,000 2,500 during construction (stock financing) The building was completed and occupied on September 30, 2017. 3. A third tract of land (site number 623) was acquired for $650,000 and was put on the market for resale 4. During December 2017, costs of $89,000 were incurred to improve leased office space. The related lease will terminate on December manner as land improvements.) 31, 2019, and is not expected to be renewed. (Hint: Leasehold improvements should be handled in the same of production for the machines. The invoice price of the machines was $87,000, freight costs were $3,300, installation costs were $2,400, and royalty payments for 2017 were $17,500. 5. A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units Instructions (a) Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 2017 Leasehold Improvements Land Buildings (b) List the items in the situation that were not used to determine the answer to (a) above, and indicate where, or if, these Culatod mounts included in the property, plant, and equipment section Disregard the related accumulated depreciation accounts. items should be included in Reagan's financial statements