Elli-16 [Asset Acquisition) Logan ustries purchased the owing assets and constructed a building as well. All this was done during the current year….

Instructions:

Record the acquisition of each of these assets

Elli-16 [Asset Acquisition) Logan ustries purchased the flowing assets and constructed a buildingas well. All this was done during the current year. Assets 1 and 2: These assets were purchased as a lump sum for €104,000 cash. The following informationwas gathered. Depreciation tolnilial Cost on Dale on Seller‘s Book Value onDescription Seller‘s Books Books Seller’s Books Appraised ValueMachinery £1 00,000 €50,000 £50000 £90000Equipment 60.000 10.000 50.000 30.000 Asset 3: This machine was acquired by making a £10,000 down payment and issuing a €30,000, 2—year,zero—interest—bearing note. The note is to be paid off in two €15,000 installmenls made at the end of the firstand second years. It was estimated that the asset could have been purchased outright for €35,900. Asset 4: This machinery was acquired by trading in used machinery. (The exchange lacks commercialsubstance.) Facts concerning the trade-in are as follows. Coat of machinery traded €100,000Accumulated depreciation to date of sale 36.000Fair value of machinery traded 80,000Cash received 10,000Fair value of machinery acquired 70,000 Asset 5: Equipment was acquired by issuing 100 shares of £8 par value ordinary shares. The shares have amarket price of €11 per share. Construction of Building: A building was constructed at a cost of £180,000. Construction began onFebruary 1 and was completed on November 1. The payments to the contractor were as follows. Data Payment211 €120,0006/1 360.000911 480,0001m 100,000 To finance construction of the building, a €600,000, 12% construction loan was taken out on February 1.The loan was repaid on November 1. The firm had £200,000 of other outstanding debt during the year at aborrowing rate of 8%.