Question

Selected accounts included in the property, plant, and equipment section of Lobo Corporation's balance sheet at December 31, 2019, had the following balances. Land Land improvements Buildings Equipment $300,000 140,000 1,100,000 960,000 During 2020, the following transactions occurred. 1. A tract of land was acquired for $150,000 as a potential future building site. 2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 20,000 shares of Lobo's common stock. On the acquisition date, Lobo's stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendota's books at $110,000 for land and $320,000 for the building at the exchange date. Current appraised values for the land and building, respectively, are $230,000 and $690,000. 3. Items of machinery and equipment were purchased at a total cost of $400,000. Additional costs were incurred as follows. Freight and unloading Sales taxes Installation $13,000 20,000 26,000 4. Expenditures totaling $95,000 were made for new parking lots, streets, and sidewalks at the corporation's various plant locations. These expenditures had an estimated useful life of 15 years. 5. A machine costing $80,000 on January 1, 2012, was scrapped on June 30, 2020. Double-declining-balance depreciation has been recorded on the basis of a 10-year life. 6. A machine was sold for $20,000 on July 1, 2020. Original cost of the machine was $44,000 on January 1, 2017, and it was depreciated on the straight-line basis over an estimated useful life of 7 years and a salvage value of $2,000. was (a) Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. (Hint: Disregard the related accumulated depreciation accounts.)

Please show work

Balance at Dec 2020 ($)

Land

Land Improvement

Buildings

Equipments  

Answer 1

	Opening Balance	Additions	Sale & Disposal	Balance at Dec 2020
Land	$          300,000	$ 185,000		$                 485,000
Land improvements	$          140,000	$   95,000		$                 235,000
Buildings	$       1,100,000	$ 555,000		$              1,655,000
Equipment	$          960,000	$ 459,000	$         124,000	$              1,295,000

	Opening Balance	Additions	Sale & Disposal	Balance at Dec 2020
Land	300000	=20000*37*230000/(230000+690000)		=B2+C2-D2
Land improvements	140000	95000		=B3+C3-D3
Buildings	1100000	=20000*37*690000/(230000+690000)		=B4+C4-D4
Equipment	960000	=400000+13000+20000+26000	=80000*+44000*	=B5+C5-D5

*Accumulated Depreciation is disregarded