Computing the cash effect of acquiring assets McKnight Exercise Equipment, Inc., reported the...

Computing the cash effect of acquiring assets McKnight Exercise Equipment, Inc., reported the following financial statements for 2012:

MCKNIGHT EXERCISE EQUIPMENT, INC. Income Statement Year Ended December 31, 2012
Sales revenue		$ 714,000
Cost of goods sold	$ 347,000
Depreciation expense	52,000
Other expenses	205,000	604,000
Total expenses
Net income		$ 110,000

 

MCKNIGHT EXERCISE EQUIPMENT, INC. Comparative Balance Sheet December 31, 2012 and 2011
Assets	2012	2011	Liabilities	2012	2011
Current:			Current:
Cash	$ 19,000	$ 18,000	Accounts payable	$ 73,000	$ 72,000
Accounts receivable	54,000	49,000	Salary payable	2,000	5,000
Inventory	81,000	89,000	Long-term notes payable	59,000	66,000
Long-term investments	95,000	77,000	Stockholders’ Equity
Plant assets, net	221,000	183,000	Common stock	47,000	34,000
			Retained earnings	289,000	239,000
			Total liabilities and
Total assets	$470,000	$416,000	stockholders’ equity	$470,000	$416,000

Requirement

1. Compute the amount of McKnight Exercise’s acquisition of plant assets. McKnight Exercise sold no plant assets.