Question 3 Your answer is partially correct. Try again. At December 31, 2016, certain accounts included in the property, plant, and equipment section of Sheffield Company's balance sheet had the following balances. Land Buildings $232,600 902,100 663,300 883,000 During 2017, the following transactions occurred. 1 Land site number 621 was acquired for $853,000. In addition, to acquire the land Sheffield paid a $54,300 commission to a real estate agent. Costs of $37,800 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $17,300. 2. A second tract of land (site number 622) with a building was acquired for $420,600. The closing statement indicated that the land value was $301,400 and the building value was $119,200. Shortly after acquisition, the building was demolished at a cost of $41,100. A new building was constructed for $327,100 plus the following costs. Excavation fees Architectural design fees Building permit fee Imputed interest on funds used during construction (stock financing) $37,700 11,000 2,500 8,500 The building was completed and occupied on September 30, 2017 3. A third tract of land (site number 623) was acquired for $655,700 and was put on the market for resale 4. During December 2017, costs of $88,700 were incurred to improve leased office space. The related lease will terminate on December 31, 2019, and is not expected to be renewed. (Mint: Leasehold improvements should be handled in the same manner as land improvements.)