Accounting for Property, Plant and Equipment During the first few days of the year, Coast Company entered into the following transactions: 1. Purchased a parcel of land with a building on it for $900,000cash. The building, which will be used in operations, has an estimated useful life of 25 years and a salvage value of $60,000. Of the purchase price, $810,000 is allocated to the cost of the building, and the remaining balance to the land. 2. Paid $30,000 for the construction of an asphalt parking lot for customers. The parking lot is expected to last 12 years and has no salvage value. 3. Paid $25,000 for the construction of a new entrance to the building. 4. Purchased store equipment, paying the invoice price (including seven percent sales tax) of $74,900 in cash. The estimated useful life of the equipment is eight years, and the salvage value is $6,000. 5. Paid $220 freight on the new equipment. 6. Paid $1,500 to repair damages to floor caused when the store equipment was aceidentally dropped as it was moved into place. 7. Paid $40 for an umbrella holder to place inside front door (customers may place wet umbrellas in the holder). The holder is expected to last 20 years