$ 2,500 Fee paid to attorney for search 285.000 Cost of real estate acquired as a plant she: Land 55,000 c 15,500 c. Cost of real estate acquired as a plant site: Building to be demolished) Delinquent real estate taxes on property, assumed by purchaser Cost of razing and removing building acquired in B d. d. 5,000 0. 4,000 t. 29,000 Proceeds from sale of salvage materials from old building Special assessment paid to city for extension of water main to the property Architect's and engineer's fees for plans and supervision Premium on one-year insurance policy during g 60,000 h. 6,000 construction 1. 12.000 Cost of filing and grading land Money borrowed to pay building 1. 900,000 contractor k 5,500 1 32,000 Cost of repairing windstorm damage during construction Cost of paving parking lot to be used by customers Cost of trees and shrubbery planted Cost of floodlights installed on m. 11,000 n. 2,000 narking lo 2.500 7.500 Son parking lot Cost of repairing vandalism damage during construction Proceeds from insurance company for windstorm and vandalism damage Payment to building contractor for new building Interest incurred on building loan during construction Refund of premium on insurance policy chi canceled after 11 months 300,000 34,500 500 Required: 1. Assign each payment and receipt to Land (unlimited wife)Land Improvements (limited life). Building, or Other Accounts in the table provided. Enter receipts as negative amounts using the minus sign. 2. Determine the amount debited to Land, Land Improvements, and Building. 3. The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation 4. What would be the effect on the income statement and balance sheet if the cost of filing and grading land 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 double-declining-balance method