1) Notsofast Inc. acquired land for $500,000, this is a material amount, on July 1, 2020. It erroneously recorded the full amount as an expense. Explain 2 tasks Notsofast must do when it discovers the error in 2021.

2) Briefly explain the following statement. Depreciation is a process of cost allocation, not valuation.

3) Why is land not depreciated? What are land improvements? Why do we record land and land improvements separately?

4) Describe when a company would use the DDB method versus straight-line depreciation.