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.

a$.$ Fee paid to attorney for title search

b$.$ Cost of real estate acquired as a plant site: Land

Required:

Required:

$2.$ Determine the amount debited to Land, Land Improvements, and Building. $2.$ Determine the amount debited to Land, Land Improvements, and Building. life using the double$-$declining$-$balance method.

Depreciation expense would be overstated $\backslash$& Land improvements would be overstated. $\backslash (\backslash$checkmark $\backslash )$