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Comprehensive At December 31, 2018, certain accounts included in the property, plant, and equipment section of Townsand Company's balance sheet had the following balances: - Land $100,000 ed Buildings 800,000 Leasehold improvements 500,000 Machinery and equipment 700,000 During 2019, the following transactions occurred: 1. Land site number 621 was acquired for $1,000,000. Additionally, to acquire the land, Townsand paid a $60,000 commission to a real estate agent. Costs of $15,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $5,000. 2. A second tract of land (site number 622) with a building was acquired for $300,000. The closing statement indicated that the land value was $200,000 and the building value was $100,000. Shortly after acquisition, the building was demolished at a cost of $30,000. A new building was constructed for $150,000 plus the follow ing costs: Excavation fees $11,000 milioni Architectural design fees 8,000 mil n o me Building permit fee 1,000 boniupon The building was completed and occupied on September 29, 2019 3. A third tract of land (site number 623) was acquired for $600,000 and was put on the market for resale. 4. Extensive work was done to a building occupied by Townsand under a lease agreement that expires on Decem ber 31, 2028. The total cost of the work was $125.000, which consisted of the following Painting of ceilings $ 10,000 (estimated useful life is 1 year) Electrical work 35,000 (estimated useful life is 10 years) Construction of extension to current working area 8 0.000 (estimated Useful life is 30 years) The lessor, Steinbeck Company, paid one half of the costs incurred in connection with the extension to the current working area. T o do During December 2019, COSTS OF SO,000 were incurred to improve leased office space. The related lose will terminate on December 31, 2021, and is not expected to be renewed A group group of new machines was purchased ment of royalties a royalty agreement that provides for based on units of production for the machines. The invoice price of the machines was $75,000, freight costs were $2,000, unloading charges were $1,500, and royalty payments for 2019 were $13,000. 6. Comprehensive At December 31, 2018, certain accounts included in the property, plant, and equipment section of Townsand Company's balance sheet had the following balances: - Land $100,000 ed Buildings 800,000 Leasehold improvements 500,000 Machinery and equipment 700,000 During 2019, the following transactions occurred: 1. Land site number 621 was acquired for $1,000,000. Additionally, to acquire the land, Townsand paid a $60,000 commission to a real estate agent. Costs of $15,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $5,000. 2. A second tract of land (site number 622) with a building was acquired for $300,000. The closing statement indicated that the land value was $200,000 and the building value was $100,000. Shortly after acquisition, the building was demolished at a cost of $30,000. A new building was constructed for $150,000 plus the follow ing costs: Excavation fees $11,000 milioni Architectural design fees 8,000 mil n o me Building permit fee 1,000 boniupon The building was completed and occupied on September 29, 2019 3. A third tract of land (site number 623) was acquired for $600,000 and was put on the market for resale. 4. Extensive work was done to a building occupied by Townsand under a lease agreement that expires on Decem ber 31, 2028. The total cost of the work was $125.000, which consisted of the following Painting of ceilings $ 10,000 (estimated useful life is 1 year) Electrical work 35,000 (estimated useful life is 10 years) Construction of extension to current working area 8 0.000 (estimated Useful life is 30 years) The lessor, Steinbeck Company, paid one half of the costs incurred in connection with the extension to the current working area. T o do During December 2019, COSTS OF SO,000 were incurred to improve leased office space. The related lose will terminate on December 31, 2021, and is not expected to be renewed A group group of new machines was purchased ment of royalties a royalty agreement that provides for based on units of production for the machines. The invoice price of the machines was $75,000, freight costs were $2,000, unloading charges were $1,500, and royalty payments for 2019 were $13,000. 6

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