Question

1. On July 6, Carla Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is:

Land		$300,000
Buildings		900,000
Equipment		600,000
Total		$1,800,000

Carla Company gave 12,300 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the purchase of the property.

2. Carla Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.)

Repairs to building		$178,500
Construction of bases for equipment to be installed later		229,500
Driveways and parking lots		207,400
Remodeling of office space in building, including new partitions and walls		273,700
Special assessment by city on land		30,600

3. On December 20, the company paid cash for equipment, $442,000, subject to a 2% cash discount, and freight on equipment of $17,850.

No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.