Pappas Computers constructed a new training center in 20x7. You have been hired to manage the training center. A review of the accounting records shows the following expenditures debited to an asset account called Training Center:

During the center’s construction, an employee of Pappas Computers worked full time overseeing the project. He spent two months on the purchase and preparation of the site, six months on the construction, one month on land improvements, and one month on equipment installation and training room furniture purchase and setup. His salary of $64,000 during this ten-month period was charged to Administrative Expense. The training center was placed in operation on November 1.
Required 1. Prepare a schedule with the following four column (account) headings:
Land, Land Improvements, Building, and Equipment. Place each of the above expenditures in the appropriate column. Total the columns.
2. User Insight: What impact does the classification of the items among several accounts have on evaluating the profitability performance of the company?
Comparison of Depreciation Methods

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Attorney's fee, land acquisition Cost of land Architect's fee, building design Building Parking lot and sidewalk Electrical wiring, building Landscaping Cost of surveying land Training equipment, tables, and chairs Installation of training equipment Cost of grading the land Cost of changes in building to soundproof rooms Total account balance $ 34,900 598,000 102,000 1,020,000 135,600 164,000 55,000 9,200 136,400 68,000 14,000 59,200 $2,396,300