Required information [The following information applies to the questions displayed below.] Palmer Cook Music Productions manages and operates two bands. The company entered into the following transactions during a recent year. January 2 Purchased a tour bus for $108,000 by paying $40,000 cash and signing a $68,000 note due in two years. In its accounting system, the company records the vehicle distinct from other types of equipment. January 8 After the bus was used for nearly one week, it was painted with the logos of the two bands at a cost of $650, on account. The logos did not increase the lifespan, operating capacity, or operating efficiency of the bus, but they were thought to be useful in promoting the bands. January 30 Wrote a check for the amount owed on account for the work completed on January 8. February 1 Purchased new speakers and amplifiers and wrote a check for the full $42,000 cost. February 8 Paid $550 cash for minor repairs to the tour bus. March 1 Paid $40,000 cash and signed a $290,000 five-year note to purchase a small office building and land. An appraisal indicated that the building and land contributed equally to the total price. March 31 Paid $99,000 cash to acquire the goodwill and certain tangible assets of Kris Myth, Incorporated. The fair values of the tangible assets acquired were $25,000 for band equipment and $63,000 for recording equipment.