Question 3 a. Kasolomujje Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Kasolomujje made the following expenditures related to the acquisition of the land, building, and equipment for the factory: Purchase price of the land Demolition and removal of old building Clearing and grading the land before construction Various closing costs in connection with acquiring the land Architect's fee for the plans for the new building $1,200,000 80,000 150,000 42,000 50,000 Payments to Maxtor for building construction 3,250,000 Equipment purchased Freight charges on equipment 860,000 32,000 Trees, plants, and other landscaping 45,000 Installation of a sprinkler system for the landscaping 5,000 Cost to build special platforms and install wiring for the equipment 12,000 7,000 24,000 Cost of trial runs to ensure proper installation of the equipment Fire and theft insurance on the factory for the first year of use Required: Determine the initial valuation of each of the assets Kasolomujje acquired in the above transactions. (6 marks) b. Fun Seth farms, Co. purchased a tractor in 2008 at a cost of $30,000. The tractor was sold for $3,000 in 2013. Depreciation recorded through the disposal totaled $26,000. Required. i. Prepare the journal entry to record the sale. (2.5 marks) ii. Assuming that the tractor was sold for $10,000, prepare the journal entry to record the sale. (2.5 marks)