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 apparel business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $3,500 b. Cost of real estate acquired as a plant site: Land 365,900 Building (to be demolished) 34,800 c. Finder's fee paid to real estate agency 20,600 5,800 d. Delinquent real estate taxes on property, assumed by purchaser e. Architect's and engineer's fees for plans for new building f. Cost of removing building purchased with land in (b) 3,400 13,700 g. Proceeds from sale of salvage materials from old building 50,300 * h. Cost of filling and grading land 4,800 20,100 i. Premium on one-year insurance policy during construction j. Money borrowed to pay building contractor 858,100 * 6,300 Special assessment paid to city for extension of water main to the k. property I. Cost of repairing windstorm damage during construction m. Cost of repairing vandalism damage during construction 17,400 10,300 1,200 n. Cost of trees and shrubbery planted 0. Cost of paving parking lot to be used by customers 2,800 p. Interest incurred on building loan during construction 6,900 43,000 * q. Proceeds from insurance company for windstorm and vandalism damage Payment to building contractor for new building s. Refund of premium on insurance policy (i) canceled after 11 months 914,800 400 * 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. a. A b. $ C. A d. e. 2 2 f. g. 2 h. i. . j. k. 2 I. 2 m. A n. 2 0. 2 p. A q. . . S. $ 2. Determine the amount debited to Land, Land Improvements, and Building. Land Land Improvements Building $ $ depreciated. Land improvements lose their 3. Since land used as a plant site lose its ability to provide services, it 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 $20,100 [payment (0)] 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