E10-12B (L01 ,2,4) (Entries for Asset Acquisition, Including Self-Construction) Below are transactions related to White Company The City of Grand Junction gives the company 5 acres of land as a plant site. The market value of this land is determined to be $173,000 (a) (b) 10,000 shares of common stock with a par value of $10 per share are issued in exchange for land and buildings. The property has been appraised at a fair market value of $500,000, of which $150,000 has been allocated to land and $350,000 to buildings. The stock of White Company is not listed on any exchange, but a block of 300 shares was sold by a stockholder 12 months ago at $78 per share, and a block of 400 shares was sold by another stockholder 18 months ago at $62 per share No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead the amounts properly chargeable to plant asset accounts for machinery constructed during the year. The following information is given rela- tive to costs of the machinery constructed (c) $18,000 $1,250 $20,000 $3,000 Materials used Factory supplies used Direct labor incurred Additional overhead (over regular) caused by construction of machinery, excluding factory supplies used Fixed overhead rate applied to regular manufacturing operations Cost of similar machinery if it had been purchased from 25% of direct labor cost outside suppliers $83,000 Instructions Prepare journal entries on the books of White Company to record these transactions