Company XYZ recently expanded its operations and incurred several costs related to acquiring and improving its assets. The company purchased land for $500,000 and a building for $1,000,000. Additionally, they invested $200,000 in leasehold improvements and acquired machinery and equipmen for $300,000. Part 1 The company uses a straight-line depreciation method, and the useful life for the building is estimated a 30 years, the leasehold improvements at 10 years, and the machinery and equipment at 5 years. The residual value of the building is estimated to be $50,000, the leasehold improvements nil, and the machinery and equipment can be sold for a scrap value of $5,000. Questions: 1. Which costs related to acquiring assets are capitalized by Company XYZ? A) Land and building only B) Land, building, leasehold improvements, machinery and equipment C) Building and machinery and equipment D) Leasehold improvements and machinery and equipment 2. What is the total amount of capitalized assets for Company XYZ? A) $1,300,000 B) $1,450,000 C) $2,000,000 D) $1,800,000 3. Why is land not subjected to depreciation? A) It has an indefinite useful life B) It is immovable property C) It has the highest acquisition cost D) It is considered a long-term investment

reti Quertion A) 51,300,000 a) 51.450 .000 c) $2,000,000 b) $2,805,000 CI It has the hishes acquercon cort