Chapter 09 Homework eBook Calculator Printem The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $3,700 b. Cost of real estate acquired as a plant site: Land 394,100 Building (to be demolished) 37,400 Finder's fee paid to real estate agency 22,200 d. Delinquent real estate taxes on property, assumed by purchaser 6,200 e. Architects and engineer's fees for plans for new building 3,700 Cost of removing building purchased with land in (b) 14,800 9. Proceeds from sale of salvage materials from old building 54,200 - . Cost of filing and grading and 5,200 Premium on one-year Insurance policy during construction 21,700 Money borrowed to pay building contractor 924,200 Special assessment paid to city for extension of water main to the 6,800 property Cost of repairing windstorm damage during construction 18,700 m. Cost of repairing vandalism damage during construction 11,100 n. Cost of trees and shrubbery planted 1,300 o. Cost of paving parking lot to be used by customers p. Interest incurred on building loan during construction 4. Proceeds from insurance company for windstorm and vandalism damage 3,100 7,400 46,300 433 T. Payment to building contractor for new building 985,300 5. Refund of premium on insurance policy (1) 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. Amount Item Account Land b. Land C Land Land Building Land n. 0. 9 2. Determine the amount debited to Land, Land Improvements, and Building Land Land Improvements Building 3. Since and used as a plant site lose its ability to provide services, depreciated. 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 the cost of filing and grading and 221,70 Coayment was incorrectly cases and improvements rather than and Assume Land Improvements are depreciated over a 20-year life using the double method