Barcelona Royal Ramblas Hotel reported the following on its Statement of financial Position at December 31, 2017: Property, Plant and Equipment: $ 1,000,000 Land Buildings 900,000 Less: Accumulated depreciation (350,000) 550,000 Equipment 500,000 Less: Accumulated depreciation ... (210,000) 290,000 The following transactions took place during 2018: . On 1 August 2018, the hotel expanded operations and purchased additional piece of Land at a cost of $200,000 (half the amount paid cash and the remaining amount on account). On 10 September 2018, the hotel expanded operations and imported new Equipment at a list price of $100,000 cash. The company paid tariffs and insurance for the new Equipment on 12 September 10,000 cash. The company also paid installation fees on 22 September for the new Equipment 5,000 cash. The company Started to use the new Equipment in the production on 26 September 2018. On 1 December 2018, the company paid maintenance and repair costs for the Equipment $2000 cash. Required: 1. Identify the items that should be classified as Capital Expenditures during 2018. Where are Capital expenditures reported at the end of the year? 5 marks 2. Identify the items that should be classified as Revenue Expenditures during 2018. Where are Revenue expenditures reported at the end of the year? 5 marks 3. Calculate the cost of acquiring the new Equipment. 5 marks 4. Record All the necessary journal entries for 2018. 25 marks 5. Calculate the depreciation expense for the Land, buildings, and Equipment at 31/12/2018. 30 marks Due to obsolescence, ALL Equipments has a useful life of only 10 years and is being depreciated by the double-declining-balance method with zero residual value. The company depreciates Buildings by the straight -line method over 50 years with residual value of $50,000. 6. Record the adjusting entries for Residence Hotel's PPE depreciation transactions for 2018. 10 marks 7. Report PPES on the December 31, 2018, Statement of Financial Position. 20 marks