c$.$ How would these entries be different if instead Sabina had signed a lease with the same

terms?

On May $31,205$ Gary's Grills financed the purchase of equipment by issuing a $$120,000,7\%$

installment note payable. Terms of the note require $5$ annual payments with the first payment due

immediately.

a$.$ At what amount should Gary report the equipment's historical cost on his balance sheet

dated December $31,20$x$5($ignoring depreciation$)?$

b$.$ Calculate the amount of Gary's annual payment.

On March $30,20$x$2,$ Al's House of Ale purchased land for a new brewery for $$310,000.$ An old

building on the property was torn down and construction began shortly thereafter. The new

brewery was ready to begin production on January $1,20$x$3.$ Costs associated with the purchase

and construction are provided below:

a$.$ Calculate recognition value of land.

b$.$ Calculate recognition value of brewery.

c$.$ Calculate the amount expensed during the period.