CullumberCo. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year...

CullumberCo. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2017.

Purchase
Cash paid for equipment, including sales tax of $7,200		$151,200
Freight and insurance cost while in transit		2,880
Cost of moving equipment into place at factory		4,464
Wage cost for technicians to test equipment		5,760
Insurance premium paid during first year of operation on this equipment		2,160
Special plumbing fixtures required for new equipment		11,520
Repair cost incurred in first year of operations related to this equipment		1,872
Construction
Material and purchased parts (gross cost $288,000; failed to take2% cash discount)		$288,000
Imputed interest on funds used during construction (stock financing)		20,160
Labor costs		273,600
Allocated overhead costs (fixed-$28,800; variable-$43,200)		72,000
Profit on self-construction		43,200
Cost of installing equipment		6,336

Compute the total cost for each of these two pieces of equipment.


On April 1, 2017,BonitaCompany received a condemnation award of $541,800cash as compensation for the forced sale of the company’s land and building, which stood in the path of a new state highway. The land and building cost $75,600and $352,800, respectively, when they were acquired. At April 1, 2017, the accumulated depreciation relating to the building amounted to $201,600. On August 1, 2017,Bonitapurchased a piece of replacement property for cash. The new land cost $113,400, and the new building cost $504,000.




CarlaCorporation wishes to exchange a machine used in its operations.Carlahas received the following offers from other companies in the industry.

1.		SarasotaCompany offered to exchange a similar machine plus $30,360. (The exchange has commercial substance for both parties.)
2.		IvanhoeCompany offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.)
3.		ShamrockCompany offered to exchange a similar machine, but wanted $3,960in addition toCarla’s machine. (The exchange has commercial substance for both parties.)

In addition,CarlacontactedBridgeportCorporation, a dealer in machines. To obtain a new machine,Carlamust pay $122,760in addition to trading in its old machine.

		Carla		Sarasota		Ivanhoe		Shamrock		Bridgeport
Machine cost		$211,200		$158,400		$200,640		$211,200		$171,600
Accumulated depreciation		79,200		59,400		93,720		99,000		–0–
Fair value		121,440		91,080		121,440		125,400		244,200