Reference no: EM132630226

Question - At December 31, 2019, certain accounts included in the property, plant, and equipment section of Oriole Company's balance sheet had the following balances.

Land $237,800

Buildings 898,600

Leasehold improvements 664,700

Equipment 883,700

During 2020, the following transactions occurred.

1. Land site number 621 was acquired for $856,900. In addition, to acquire the land Oriole paid a $56,100 commission to a real estate agent. Costs of $42,800 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $22,800.

2. A second tract of land (site number 622) with a building was acquired for $422,800. The closing statement indicated that the land value was $302,400 and the building value was $120,400. Shortly after acquisition, the building was demolished at a cost of $41,100. A new building was constructed for $327,900 plus the following costs.

Excavation fees $37,900

Architectural design fees 11,000

Building permit fee 2,400

Imputed interest on funds used during construction (stock financing) 8,500

The building was completed and occupied on September 30, 2020.

3. A third tract of land (site number 623) was acquired for $644,800 and was put on the market for resale.

4. During December 2020, costs of $89,100 were incurred to improve leased office space. The related lease will terminate on December 31, 2022, 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 $87,800, freight costs were $3,300, installation costs were $2,400, and royalty payments for 2020 were $17,300.

Required - Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. Disregard the related accumulated depreciation accounts.