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At December 31,2009 certian accounts included in the property, plant and equipment section of Reagan Company's balance sheet had the following balance: land $230000,Building $890000, Leasehold improvements $660000, Machinery and equipment 875000. During 2010 the following transactions occurred; 1. Land site number 621 was aquired for $850000.In addition, to acquire the land Reagan paid a $51000 commission to a real estate agent.Costs of $350,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $13,000. 2.A second tract of land (sie number 622)with a building was acquired for $420,000. The closing statement indicated that the land value was $300,000 and the building value was $120,000. shortly after acquisition, the building was demolished at cost of $41,000.A new building was constructed for $330,000 plus the following costs: Excavation fees 38000,Architectural design fees $11,000,Building permit fee& 2,500, Imputed interest on funds used during construction(stock financing)$8,500. The building was completed and occupied on September 30,2010. 3.A third track of land(site number 623)was acquired for $650,000 and was put on the market for resale. 4.During December 2010 cost of $89,000 were incurred to improve leased office space. The related lease will terminate oon December 31,2012, and is not expected to be renewed. 5.A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machines was $87,000, freight cost were $3,300, installation costs were $2,400, and royalty payyments for 2010 were $17,500. Instractions 1.Prepare a detailed analysis of the changes in each of thr folowing balance sheet accounts for 2010;land, leasehold improvements, buildings, machinery and equipment. Disregard the related accumulated depretiation accounts. 2. List the items in the situation that were not used to determine the answer to (1) above, and indicate where, or if, these items should be included in Reagan's financial statements

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