Question 3 At December 31, 2016, certain accounts included in the property, plant, and equipment section of Sheffield Company's balance sheet had the following balances. Land Buildings $232,600 902,100 663,300 883,000 During 2017, the following transactions occurred. 1. Land site number 621 was acquired for $853,000. In addition, to acquire the land Sheffield paid a $54,300 commission to a real estate agent. Costs of $37,800 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $17,300 2. A second tract of land (site number 622) with a building was acquired for $420,600. The closing statement indicated that the land value was $301,400 and the building value was $119,200. Shortly after acquisition, the building was demolished at a cost of $41,100. A new building was constructed for $327,100 plus the following costs. Excavation fees Architectural design fees Building permit fee Imputed interest on funds used during construction (stock financing) $37,700 11,000 2,500 8,500 The building was completed and occupied on September 30, 2017 3. A third tract of land (site number 623) was acquired for $655,700 and was put on the market for resale. 4. During December 2017, costs of $88,700 were incurred to improve leased office space. The related lease will terminate on December 31, 2019, and is not expected to be renewed. (Hint: Leasehold improvements should be handled in the same manner as land improvements.) 5. A group of new machines was purchased under royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machines was $86,800, freight costs were $3,300, installation costs were $2,400, and royalty payments for 2017 were 17,600