to , Inter 16e Exercise 10-16 vanhoe Industries purchased the following Assets 1 and 2: These assets were purchased as a lump sum for $150,000 cash, The following information was gathered assets and constructed a building as well. All this was done during the current year Initial Cost on to Book Value on Descri $150,000 $75,000 75,000 $135,000 45,000 Equipment 0,000 15,000 Asset 3: This machine was acquired by making $15,000 down payment and issuing a $45,000, 2-year, z note. The note is to be paid off in two $22,500 instalilments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $53,850 Asset 4: This machinery wes acquired by trading in used machinery. (The exchange lacks commercial substance.) Facts concerning the trade-in are as follows. Cost of machinery traded $150,000 to date of sale Fair value of machinery traded 15,000 Asset 5: Equipment was acquired by issuing 100 shares of $12 par value common stock. The stock had a market price of $17 per share Construction of Building: A bu ding -contructed on Ind ~ chased last year at of S225,000. Construction began on February 1 and was completed on s to the contractor were as follows Date