Allocating payment xed asset accounts The following payents and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asteris a. Fee paid to attorney for title seardch $2,500 b. Cost of real estate acquired as a plant site: Land 285,000 Building (to be demolished) 55,000 c. 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 f. Special assessment paid to city for extension of water main to the property 29,000 g. Architect's and engineer's fees for plans and supervision 60,000 h. Premium on one-year insurance policy during construction 6,000 Cost of filling and grading land L. 12,000 Money borrowed to pay building contractor 1 900,000 k. Cost of repairing windstorm damage during construction 5,500 Cost of paving parking lot to be used by customers L 32,000 m. Cost of trees and shrubbery planted 11,000 n. Cost of floodlights installed on parking lot 2,000 Cost of repairing vandalism damage during construction 0. 2,500 p. Proceeds from insurance company for windstorm and vandalism damage 7,500 q. Payment to building contractor for new building 800,000 Interest incurred on building loan during construction 34,500 S Refund of premium on insurance policy (h) canceled after 11 months 500 34,500 s. Refund of premium on insurance policy (h) canceled after 11 months 500 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 en letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign. Item Account Amount a. b. C. d. e. 9 h. 3 k m. Land Improvementsi Check My Work Next Previous All work saved Email Instructor Save and Exit Submit Assignment for rading 12444 L. m. Land Improvements Land Improvements X Building X Other Accounts X Incorrect Building Building 2. Determine the amount debited to Land, Land Improvements, and Building. Land Land Improvements Building lose 3. Land used as a plant site depreciated. However, land improvements lose its ability to provide services; thus, it 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 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. Febek YCheck My Work Remember that in addition to purchase price, costs of acquiring fixed assets include all amounts spent getting the asset in place and ready for se. Consider how receipts affect the accounts. Recall that land improvements have a limited Me but are capitalzed. Costs incurred to ready the asset for use are added to the asset account. Unnecessary costs that do Previous Next Check My Work