Problem 5: Acct for PPE a) Rizio Co. purchases a machine for $12,500, terms 2/10, n/60 and and took the $250 discount. Transportation costs of $360 were paid by Rizio. The machine requires mounting and power connections costing $895. Another $475 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged, and $180 worth of repairs were made. Compute the cost recorded for this machine. b) Cala Manufacturing purchases land for $390,000 as part of its plans to build a new plant. The company pays $33,500 to tear down an old building on the lot and $447,000 to fill and level the lot. It also pays construction costs of $1,452,200 for the new building and $87,800 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. 10 points General Journal Debit Credit c) R Co. pays $395,380 for real estate with land, land improvements and a building. Land is appraised at $157,040, land improvements are appraised at $58,890, and the building is appraised at $176,670. Prepare the journal entry to record the purchase. 12 points Appraised Values % of Appraised x Total Cost of Apportioned Value Acquisition Cost General Journal Debit Credit