a e. 3,500 1. Allocating Payments and Receipts to Fixed 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 Fee paid to attorney for title search $3,500 b. Cost of real estate acquired as a plant site: Land 372,700 Building to be demolished) 35,400 Delinquent real estate taxes on property, assumed by purchaser 21,000 d. Cost of tearing down and removing building acquired in (b) 5,900 Proceeds from sale of salvage materials from old building Special assessment paid to city for extension of water main to the property 14,000 9. Architect's and engineer's fees for plans and supervision 51,200 Premium on one-year Insurance policy during construction 4,900 Cost of filing and grading and 20,500 Money borrowed to pay building contractor 874,000 ke Cost of repairing windstorm dorrage during construction 6,400 Cost of paving parking lot to be used by customers 17,700 m Cost of trees and shrubbery planted 10,500 n. cost of floodlights installed on parking lot 1,200 a cost of repairing vandalism damage during construction 2,900 Proceeds from insurance company for Windstorm and Vandaism damage 7,000 Payment to building contractor for new building 931,800 Interest incurred on building lon during construction 43,800 With h. 1 Refund or premium on Insurance policy (h) canceled after 11 months 408 Required: 1. Assign each payment and receipt to Land (unlimited life), 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 Item Account Amount b. c. d. 9, h, m 0 p. 9. 2. Determine the amount debited to Land, Land Improvements, and Building Land Land Improvements Building 3. Since land used as a plant site lose its ability to provide services, deprecated. Land improvements lose their ability to provide services as time passes and are, therefore, 4. What would be the effect on the current year's income statement and balance sheet the cost of riting and grading land of $20,500 (pryment (1) was incorrectly classified as Land Improvements rather than Land? Assume that and Improvements are deprecated over a 20-year life using the double declining balance method