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Machinery and equipment
Total
800,000
$2,400,000
Jamona Corp. gave 12,500 shares of its $100 par value common
stock in exchange. The stock had a market value of $168 per share
on the date of the purchase of the property.
Jamona Corp. expended the following amounts in cash between July
6 and December 15, the date when it first occupied the building.
Repairs to building
$105,000
Construction of bases for machinery to be installed later
Driveways and parking lots
Remodeling of office space in building
Special assessment by city on land
135,000
122,000
161,000
18,000
On December 20, the company paid cash for machinery, $260,000,
subject to a 2% cash discount, and freight on machinery of $10,500.
On January 1, 2007, Jamona Corp. signed a five-year non-
cancelable lease for a machine. The terms of the lease called for
Jamona to make annual payments of $8,668 at the beginning of each
year, starting January 1, 2007. The machine has an estimated useful