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Allocating payments and receipts to fored asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk a Fee paid to attorney for title search $2,000 b. Cost of real estate acquired as a plant site: Land 280,000 Building (to be demolished) 50,000 Delinquent real estate taxes on property, assumed by purchaser 15,500 d. Cost of razing and removing building acquired in (b) 5,000 e. Proceeds from sale of salvage materials from old building 4,000 t. Special assessment paid to city for extension of water main to the property 29,000 9. Architect's and engineer's fees for plans and supervision 60,000 h. Premium on one-year Insurance policy during construction 5,000 1. Cost of hilling and grading land 12,000 Money borrowed to pay building contractor 900,000 k Cost of repairing windstorm damage during construction 5,500 1. Cost of paving parking lot to be used by customers 31,000 m. Cost of trees and shrubbery planted 10,000 2,000 n. Cost of floodlights installed on parking lot 2,500 O Cost of repairing vandalism damage during construction m. Cost of trees and shrubbery planted 10,000 n. Cost of floodlights installed on parking lot 2,000 0. Cost of repairing vandalism damage during construction 2,500 p. Proceeds from Insurance company for windstorm and vandalism damage 8,000 9. Payment to building contractor for new building 800,000 Interest incurred on building loan during construction 34,500 5. Refund of premium on Insurance policy (h) canceled after 11 months Required: 1. Assign each payment and receipt to Cand (unlimited Ife), Land improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign, 400- Item Account Amount a. b. C d e. 9 Previous Ne k m 0 P. a 2. Determine the amount debited to Land, Land Improvements, and Building. Land Land Improvements Building 3. Land used as a plant site Accounting numeric field its ability to provide services; thus, it deprecated. However, and improvements lose their ability to provide services as time passes and are, therefore, 4. What would be the effect on the income statement and balance sheet if the cost of filling and grading fand of $12,000 (payment (was incorrectly classified as Land Improvements rather than Land? Assume Land Improvements are depreciated over a 20-year life using the doubledeclining balance method