Ayer Furniture Co. purchased land, paying \($95,000\) cash plus a \($270,000\) note payable. In addition, Ayer paid delinquent property tax of \($2,000\), title insurance costing \($2,500\), and \($3,000\) to level the land and remove an unwanted building. The company then constructed an office building at a cost of \($550,000\). It also paid \($52,000\) for a fence around the property, \($17,000\) for a sign near the entrance, and \($4,000\) for special lighting of the grounds.
Requirements
1. Determine the cost of the land, land improvements, and building.
2. Which of these assets will Ayer depreciate?