In 2024, Weisman Company had the following transactions related to the purchase of a property. All transactions are for cash unless otherwise stated.

Feb. 7 Purchased real estate for $575,000, paying $115,000 cash and signing a note payable for the balance. The site had an old building on it and the fair value of the land and building were $555,000 and $30,000, respectively. Weisman intends to demolish the old building and construct a new apartment building on the site.

9 Paid legal fees of $7,500 on the real estate purchase of February 7.

15 Paid $19,000 to demolish the old building and make the land ready for the construction of the apartment building.

17 Received $8,500 from the sale of material from the demolished building.

25 Graded and filled the land in preparation for the building construction at a cost of $10,500.

Mar. 2 Architect’s fees on the apartment building were $28,000.

15 Excavation costs were $18,000. Construction began on March 20.

Aug. 31 The apartment building was completed. The full cost of construction was $850,000. Paid $170,000 cash and signed a note payable for the balance.

Sept. 3 Paid $40,000 for sidewalks and a parking lot for the building.

10 Purchased a one-year insurance policy on the finished building for $3,750.

Oct. 31 Paid $37,750 for landscaping. 

Instructions 

a. Record the above transactions. 

b. Determine the cost of the land, land improvements, and building that will appear on Weisman’s December 31, 2024, balance sheet.

When should Weisman begin recording depreciation on this property and on which assets?