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 b. Cost of real estate acquired as a plant site: Land $3,600 375,300 Building (to be demolished) 35,700 C. Finder's fee paid to real estate agency 21,100 d. Delinquent real estate taxes on property, assumed by purchaser 5,900 e. Architect's and engineer's fees for plans for new building f. Cost of removing building purchased with land in (b) 3,500 14,100 g. Proceeds from sale of salvage materials from old building h. Cost of filling and grading land 51,600* 5,000 j. Premium on 1-year insurance policy during construction 20,600 j. Money borrowed to pay building contractor k. Special assessment paid to city for extension of water main to the property 880,100* 6,500 I. Cost of repairing windstorm damage during construction 17,800 m. Cost of repairing vandalism damage during construction n. Cost of trees and shrubbery planted o. Cost of paving parking lot to be used by customers p. Interest incurred on building loan during construction q. Proceeds from insurance company for windstorm and vandalism damage 10,600 1,200 2,900 7,000 44,100* T. Payment to building contractor for new building 938,300 s. Refund of premium on insurance policy (i) canceled after 11 months 417* P. 9. d T S. 2. Determine the amount debited to Land, Land Improvements, and Building. Land Improvements Building lose its ability to provide services, it depreciated. Land improvements lose their ability to provide services as time passes and are, 4. What would be the effect on the income statement and balance sheet if the cost of filling and grading land of $20,600 [payment (1)] 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. Land 3. Since land used as a plant site therefore, 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 a. b. C d. e. f. 9. h. i. j- k. 1. m. . 0. p. 9. Account Amount