During 2020, Roberts Inc. paid \(\$ 200,000\) for land and built a restaurant in Collingwood, Ontario. Prior to construction, the City of Collingwood charged Roberts Inc. \(\$ 2,250\) for a building permit, which Roberts Inc. paid. Roberts Inc. also paid \(\$ 20,000\) for architect's fees. The construction cost of \(\$ 700,000\) was financed by a long-term note payable issued on January 1,2020 , with interest cost of \(\$ 29,000\) paid at December 31,2020 . The building was completed September 30, 2020. Roberts Inc. will depreciate the building by the straight-line method over 25 years, with an estimated residual value of \(\$ 60,000\)

1. Journalize transactions for the following (explanations are not required):

a. Purchase of the land

b. All the costs chargeable to the building, in a single entry

c. Depreciation on the building 2. Report this transaction in the Property, Plant, and Equipment on the company's balance sheet at December 31, 2020.

3. What will Roberts Inc.'s income statement for the year ended December 31, 2020, report for the building?

4. Suppose in 2021 , Roberts Inc. changed the useful life of the building from 25 years to 30 years. How will this affect the income statement and balance sheet?