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5. The Kingwood Company reported net income of $43,000 and average total assets of $390,000. Calculate the company's return on assets. Round answer to one decimal place. (Ex. 0.2345 = 23.5%)

6. The Kingwood Company reported net income of $610,000 and average total assets of $498,000. Calculate the company's asset turnover. Round answer to two decimal places.

7.

Acquisition Cost of Long-Lived Asset

The following data relate to a firms purchase of a machine used in the manufacture of its product:

Invoice price	$26,000
Applicable sales tax	1,800
Cash discount taken for prompt payment	1,000
Freight paid	860
Cost of insurance coverage on machine while in transit	725
Installation costs	1,600
Testing and adjusting costs	1,075
Repair of damages to machine caused by the firm's employees	1,150
Prepaid maintenance contract for first year of machine's use	900

Determine the acquisition cost of the machine.

The following items represent expenditures (or receipts) related to the construction of a new home office for Lowrey Company.

Cost of land site, which included an old apartment building appraised at $75,000	$168,000
Legal fees, including fee for title search	2,400
Payment of apartment building mortgage and related interest due at time of sale	12,300
Payment for delinquent property taxes assumed by the purchaser	7,000
Cost of razing the apartment building	20,000
Proceeds from sale of salvaged materials	(4,100)
Grading to establish proper drainage flow on land site	2,200
Architect's fees on new building	330,000
Proceeds from sales of excess dirt (from basement excavation) to owner of adjoining property (dirt was used to fill in a low area on property)	(2,500)
Payment to building contractor	8,000,000
Payment of medical bills of employee accidentally injured while inspecting building construction	1,700
Special assessment for paving city sidewalks (paid to city)	18,300
Cost of paving driveway and parking lot	28,000
Cost of installing lights in parking lot	12,200
Premium for insurance on building during construction	10,500
Cost of open house party to celebrate opening of new building	8,000

Required

From the given data, calculate the proper balances for the Land, Building, and Land Improvements accounts of Lowrey Company.

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