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Solve the following two problems in which you are asked to apply proper asset valuation. Submit your solutions to both problems on the same page of one Excel document.

Problem 1

You have been given the following information for Ethan Company as of June 1, 2010. Ethan Company purchased a parcel of land and then incurred specific costs for the construction of a new building. Below is a list of these costs:

Cost of Parking Lot and gates=$14,000	Cost of filling the building site= $10,000	Legal Fees to buy land= $2,000
Cost of driveway= $9,000	Property Taxes for Jan 1,2010 to June 1, 2010= $5,000	Title Insurance= $2,000
Interest on the construction loan= $13,000	Proceeds from the sale of salvage materials= ($1500)	Purchase price of land= $200,000
Cost of the building construction= $650,000	Cost of razing building on lot= $9,500	Cost of grading the lot= $5,000

Using Excel, determine the accounts that are affected by the above transactions and the final balance of each account. (Note: The interest on the construction loan will be applied to the cost of the land.)

Please prepare your solution in an Excel file.

Problem 2

On April 25, 2010, Bullseye Company purchased all of the outstanding common stock of Vista Company, paying $14,000,000. The book values and fair values of Vista's assets and liabilities acquired are shown below in dollar amounts:

Accounts	Book Value	Fair Value
Accounts Receivables	$1,900,000	$1,725,000
Inventories	$2,800,000	$4,000,000
Accounts Payable	$2,000,000	$2,000,000
Property, Plant and Equipment	$8,000,000	$12,625,000
Bonds Payable	$4,600,000	$4,225,000