I just need the solution for the boxes marked in red which are incorrect.

Exercise 10-16 Your answer is partially correct. Try again. Hayes Industries purchased the following assets and constructed a building as well. All this was done during the current year. Assets 1 and 2: These assets were purchased as a lump sum for $100,000 cash. The following information was gathered. Initial Cost on Seller's Books $100,000 60,000 Depreciation to Date on Seller's Books Description Machinery Equipment Book Value on Seller's Books $50,000 50,000 Appraised Value $50,000 10,000 $90,000 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 installments made at the end of the first and 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 commercial substance.) Facts concerning the trade-in are as follows. Cost of machinery traded Accumulated depreciation to date of sale Fair value of machinery traded Cash received Fair value of machinery acquired $100,000 40,000 80,000 10,000 70,000