CCT 2110 Fall 2023 (Online; 8-week) CE #4 (Ch. 9) Due: Sunday, 9/24 at 9 pm Item 1: Entity A incurred the following plant asset expenditures during the year. 1. Real estate purchased to build a car wash (seller valued land at $60,000 and building $40,000) $100,000 2. Accrued real estate taxes (owed by seller) paid at time of purchase of real estate 6,000 3. Cost of demolition of building to make land suitable for construction of car wash 35,000 4. Cost of filling and grading the land 5,700 5. Excavation (foundation) costs for new car wash 25,000 6. Engineering and design fees for car wash 44,000 7. Full payment to car wash builder 600,000 8. Cost of lighting, paving, and signs 100,000 9. Proceeds from salvage of demolished building 5,500 10. Automation equipment for car wash customer payments 25,000 List the items and amounts that make up the Land account. Be sure to provide a total. Item 2: Equipment with a cost of $72,000 has an estimated salvage value of $9,600 and an estimated life of 5 years. Compute the annual depreciation and then show what this asset looks like on the balance sheet at the end of the second year (prepare a partial classified balance sheet). Show your work. Item 3: Equipment that cost $183,000 and on which $165,000 of accumulated depreciation has been recorded was disposed of for $16,000 cash. Make the entry to record this transaction. Hint: Compute book value and then gain (loss). Item 4: Entity B bought equipment for $400,000 on January 1, 2023. It estimated the useful life to be 10 years with no salvage value, and the straight-line method of depreciation was used. On January 1, 2024, Entity B decides that it will use the equipment for a total of 4 years. Compute the revised depreciation expense for 2024 and make the entry to record depreciation expense. Show work