Question 6 At December 31, 2016, certain accounts included in the property, plant, and equipment section of Larkspur Company's balance sheet had the following balances. Land $238,200 Buildings 905,200 Leasehold improvements 661,900 Equipment 883,800 During 2017, the following transactions occurred. 1. Land site number 621 was acquired for $850,800. In addition, to acquire the land Larkspur paid a $53,000 commission to a real estate agent. Costs of $36,200 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $20,400. 2. A second tract of land (site number 622) with a building was acquired for $417,500. The closing statement indicated that the land value was $297,500 and the building value was $120,000. Shortly after acquisition, the building was demolished at a cost of $41,000. A new building was constructed for $331,400 plus the following costs. Excavation fees $37,700 Architectural design fees 11,100 Building permit fee 2,500 Imputed interest on funds used during construction (stock financing) 8,600 The building was completed and occupied on September 30, 2017. 3. A third tract of land (site number 623) was acquired for $650,800 and was put on the market for resale. 4. During December 2017, costs of $89,300 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 _._.._ _.. _______ I.J :_.._..-..__..AL_ \\ The building was completed and occupied on September 30, 2017. 3. A third tract of land (site number 623) was acquired for $650,800 and was put on the market for resale. 4. During December 2017, costs of $89,300 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 a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machines was $86,200, freight costs were $3,300, installation costs were $2,300, and royalty payments for 2017 were $17,600. (a) Calculate the balance at December 31, 2017 in each of the following balance sheet accounts. Disregard the related accumulated depreciation accounts. Balance at December 31, 2017 Land $ Buildings $ Leasehold Improvements $ Equipment $ Click if you would like to Show Work for this question: Qpen Show Work