Allocating Payments and Receipts to Fixed Asset Accounts The following payments and receipts are related to land, and 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 b. Cost of real estate acquired as a plant site: Land 292,000 Building to be demolished) 27,700 Delinquent real estate taxes on property, assumed by purchaser 16,400 Cost of rating and removing building acquired in Proceeds from sale of salvage materials from old building 2,700 1 Special assessment paid to city for extension of water main to the property 11,000 9. Architect's and engineer's fees for plans and supervision 40,200 Premium on one year insurance policy during construction 3.000 Cost of filing and grading and 16.100 Money borrowed to pay building contractor 684,700 Cost of repairing windstorm damage during construction 5.000 cost of paving panding lot to be used by customers 13,900 Cost of trees and shrubbery planted 8,200 Cost of foodignes installed on parking lot 900 Cost of repairing and damage during construction Proceeds from insurance company for windstorm andvandalism damage Payment to building contractor for new building 730,000 Interest incurred on building on during construction 34.300 Refund of premium on Insurance policy canceled after 11 months 325 Required: 5,500 1. Assign each payment and receipt to Land (unlimited fel, Land Improvements (mited Bunding or Other Accounts. Choose the correct account from the foreacher and enter the more Item Account - - - - - 2. Determine the amount debited to Land, Land Improvements, and Building, Land Land Improvements Building foseits ablity to provide services, depreciated. Land improvements lose their ability to provide services as time 3. Since land used as a plant site passes and are therefore 4. What would be the effect on the income statement and balance sheet if the cost of filing and grading land of $16,100 (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