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. Fee paid to attorney for title search 5. Cost of real estate acquired as a plant site: Land 290.000 $3.000 55.000 16.000 4.000 Building (to be demolished) Delinquent real estate taxes on property, assumed by purchaser Cost of razing and removing building acquired in (b) 6,000 Proceeds from sale of salvage materials from old building Special assessment paid to city for extension of water main to the property Architect's and engineer's fees for plans and supervision Premium on one-year insurance policy during 28.000 9 70,000 5.000 construction 11,000 900.000 31,000 11.000 1.000 o. 2.500 D. 7,000 Cost of Filling and grading land Money borrowed to pay building contractor Cost of repairing windstorm damage during construction 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 Proceeds from insurance company for windstorm and vandalism damage 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 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. 900,000 34.500 400- 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. Item Account Amount b d. f 9. h. 1. R 1. m 0. p. 9 5. 2. Determine the amount debited to Land, Land Improvements, and Building. Land Improvements Building Land 3. Land used as a plant site lose its ability to provide services; thus, it depreciated. However, land improvements lose 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 $11,000 (payment (] was incorrectly classified as Land Improvements rather than Land? Assume Land Improvements are depreciated over a 20-year life using the doubledeclining-balance method