Best Parking, near an airport, incurred the following costs to acquire land, make

land improvements, and construct and furnish a small building:

a. Purchase price of three acres of land 89000

b. Delinquent real estate taxes on the land to be paid by Best Parking 6000

c. Additional dirt and earthmoving 8000

d. Title insurance on the land acquisition 3600

e. Fence around the boundary of the property 9100

f. Building permit for the building 800

g. Architect's fee for the design of the building 20200

h. Signs near the front of the property 9400

i. Materials used to construct the building 212000

j. Labor to construct the building 172000

k. Interest cost on construction loan for the building 9300

I. Parking lots on the property 28900

m. Lights for the parking lots 10100

n. Salary of construction supervisor (75% to building; 25% to parking lot and 40000

concrete walks)

o. Furniture 11500

p. Transportation of furniture from seller to the building 2000

q. Additional fencing 6900

Best Parking depreciates land improvements over 25 years, buildings over 50 years,

and furniture over 12 years, all on a straight-line basis with zero residual value.

Requirements

1. Set up columns for Land, Land Improvements, Building, and Furniture. Show

how to account for each cost by listing the cost under the correct account.

Determine the total cost o f each asset.

2. A l l construction was complete and the assets were placed in service on July 1.

Record partial-year depreciation expense for the year ended December 31.