Testbank Problem 138 Sandra Manufacturing Co. was incorporated on 1/2/17 but was unable to begin manufacturing activities until 8/1/20 because new factory facilities were not completed until that date. The Land and Buildings account at 12/31/20 per the books was as follows: Date Item Amount
1/31/20 Land and dilapidated building $196,000
2/28/20 Cost of removing building 3,920
4/1/20 Legal fees 5,880
5/1/20 Fire insurance premium payment 5,292
5/1/20 Special tax assessment for streets 4,410
5/1/20 Partial payment of new building construction 205,800
8/1/20 Final payment on building construction 205,800
8/1/20 General expenses 29,400
12/31/20 Asset write-up 73,500
$730,002

Additional information:
1. To acquire the land and building on 1/31/20, the company paid $98,000 cash and 1,000 shares of its common stock (par value share of $180).
2. When the old building was removed, Sandra paid Kwik Demolition Co. $3,920, but also received $1,470 from the sale of salvaged material.
3. Legal fees covered the following:
Cost of organization $2,450
Examination of title covering purchase of land 1,960
Legal work in connection with the building construction 1,470
$5,880
4. The fire insurance premium covered premiums for a three-year term beginning May 1, 2020.

5. General expenses covered the following for the period 1/2/20 to 8/1/20.
President's salary $19,600
Plant superintendent covering supervision of new building 9,800
$29,400
6. Because of the rising land costs, the president was sure that the land was worth at least $73,500 more than what it cost the company.

Required:
Determine the proper balances as of 12/31/20 for a separate land account and a separate buildings account.