23. Cotton Hotel Corporation recently purchased Emporia Hotel and the land on which it is located with the plan to tear down the Emporia Hotel and build a new luxury hotel on the site. The cost of the Emporia Hotel should be A) depreciated over the period from acquisition to the date the hotel is scheduled to be torn down B) capitalized as part of the cost of the land. C) capitalized as part of the cost of the new hotel. D) written off as an extraordinary loss in the year the hotel is torn down. 24. Fences and parking lots are reported on the balance sheet as A) land. B) current assets. C) land improvements. D) property and equipment. 25. On January 1, 2010, Miller Corporation purchased for $608,000, equipment having a useful life of ten years and an estimated salvage value of $32,000. Miller has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2017, the equipment was sold for $201,600. As a result of this sale, Miller should recognize a gain of A) $112,000. B) S0. C) S54,400. D) $22,400. Problems (15 points each)