1) Revson Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $55,000; brokers fees, $6,000; title search and other fees, $5,000; demolition of an old building on the property, $5,700; grading, $1,200; digging foundation for the road, $3,000; laying and paving driveway, $25,000; lighting $7,500; signs, $1,500. List the items and amounts that should be included in the Land account.

2) Mike Geary, the controller of Shellhammer Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2017. Here are his findings:

Type of Asset	Date Acquired	Cost	Accumulated Depreciation, Jan. 1, 2017	Useful Life (in Years)			Salvage Value
				Old		Proposed	Old	Proposed
Building	Jan. 1, 2009	$2,700,000	$516,000	40	50		$120,000	$84,000
Warehouse	Jan. 1, 2012	240,000	46,000	25	20		10,000	8,000

All assets are depreciated by the straight-line method. Shellhammer Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Mike's proposed changes. (The "Proposed" useful life is total life, not remaining life.)

Instructions

(a) Compute the revised annual depreciation on each asset in 2017. (Show computations.)

(b) Prepare the entry (or entries) to record depreciation on the building in 2017.