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. $3,500 a. $3,500 373,000 35,400 21,000 5,900 3,500* 14,000 51,300 4,900 20,500 Fee paid to attorney for title search b. Cost of real estate acquired as a plant site: Land Building (to be demolished) CDelinquent real estate taxes on property, assumed by purchaser d. Cost of tearing down and removing building acquired in (b) e. Proceeds from sale of salvage materials from old building f. Special assessment paid to city for extension of water main to the property 9. Architect's and engineer's fees for plans and supervision h. Premium on one-year insurance policy during construction 1. Cost of filling and grading land j. Money borrowed to pay building contractor k cost of repairing windstorm damage during construction 1 Cost of paving parking lot to be used by customers m. Cost of trees and shrubbery planted Cost of floodlights installed on parking lot Cost of repairing vandalism damage during construction D. Proceeds from insurance company for windstorm and vandalism damage 9. Payment to building contractor for new building Interest incurred on building loan during construction Refund of premium on insurance policy (h) canceled after 11 months 874,700 6,400 17,700 10,500 n. 1,200 0. 2,900 7,000 932,500 43,800 408 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. Account Amount Item a b. C. d. e. 1. 0 h. 1 1. m. 0 q. b T, $ S. 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, it depreciated. 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 if the cost of Filling and grading land of $20,500 (payment () was incorrectly cassified as Land Improvements rather than Land? Assume that Land improvements are depreciated over a 20-year life using the double-dedinino balance method