Airport Parking, near an airport, incurred the following costs to acquire land, make land improvements, and construct and furnish a small building:

Airport Parking depreciates land improvements over 15 years, buildings over 30 years, and furniture over 12 years, all on a straight-line basis with zero residual value.

Requirements
1. Set up columns for Land, Land Improvements, Building, and Furniture. Show how to account for each cost by listing the cost under the correct account. Determine the total cost of each asset.
2. All construction was complete and the assets were placed in service on May 1. Record partial-year depreciation for the year ended December 31.

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a. Purchase price of 3 acres of land b. Delinquent real estate taxes on the land to be paid by Airport Parking .......... c. Additional dirt and earthmoving $ 82,000 6,300 8,700 d. Title insurance on the land acquisition 3,300 e. Fence around the boundary of the property 9,800 f. Building permit for the building. 700 g. Architect's fee for the design of the building... 23,100 h. Signs near the front of the property 9,300 i. Materials used to construct the building. 218,000 j. Labor to construct the building 167,000 k. Interest cost on construction loan for the building 9,100 1. Parking lots on the property 28,800 m. Lights for the parking lots 11,400 n. Salary of construction supervisor (75% to building; 25% to parking lot and concrete walks) 70,000 o. Furniture 11,100 p. Transportation of furniture from seller to the building q. Landscaping (shrubs). 2,600 6,200