Tristar Production Company began operations on September 1, 2024. Listed below are a number of transactions that occurred during its first four months of operations.

On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $200,000 in cash for the property. According to appraisals, the land had a fair value of $134,200 and the building had a fair value of $85,800.

On September 1, Tristar signed a $50,000 noninterest-bearing note to purchase equipment. The $50,000 payment is due on September 1, 2025. Assume that 8% is a reasonable interest rate.

On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,500.

On September 18, the company paid its lawyer $8,000 for organizing the corporation.

On October 10, Tristar purchased equipment for cash. The purchase price was $25,000 and $1,000 in freight charges also were paid.

On December 2, Tristar acquired equipment. The company was short of cash and could not pay the $6,500 normal cash price. The supplier agreed to accept 200 shares of the company's no-par common stock in exchange for the equipment. The fair value of the stock is not readily determinable.

On December 10, the company acquired a tract of land at a cost of $30,000. It paid $2,500 down and signed a 10% note with both principal and interest due in one year. Ten percent is an appropriate rate of interest for this note.