deep Singh ernet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing Q1. Assume Milne's Moving & Storage Ltd. (MMS) of Regina, Saskatchewan, incurred the following costs in acquiring land, making land improvements, and constructing and furnishing its own storage warehouse: a. Purchase price of 4 acres of land, including an old building that will be used for an office (land fair value is $320,000, building fair value is $80,000) b. Landscaping (additional dirt and earth moving) $350,000 c. Fence around the land 8,100 31,600 d. Lawyer fee for title search on the land 1,000 e. Delinquent real estate taxes on the land to be paid by MMS 7,500 f. Company signs at front of the company property 3,400 & Building permit for the warehouse 1,500 h. Architect fee for the design of the warehouse 24,500 1. Masonry, carpentry, rooting, and other tabour to construct the warehouse 920.000 1. Renovation of the office building 50,200 k. Interest cost on construction Icon for warehouse 9,700 1. Landscaping (trees and shrubs) 8.200 m Parking lot, concrete walks, and lights on the property 57,600 n. Concrete, wood, and other materials used in the construction of the warehouse 234,200 o Supervisory salary of construction supervisor (85% to warehouse, 5% to land improvements 10% to office building) 60,000 p. office fumiture 115,700 2,300 9. Transportation and installation of furniture Assume MMS deprecates buildings over 40 years land improvements over 20 years, and furniture over 8 years, all on a straight-line basis with zero residual value Requirements: Set up columns for Land, Land Improvements, Warehouse Office Building, and Furniture. Show how to account for each of MMS's costs by listing the cost under the o o toiming BROTHER COMPANY 8. Building permit for the warehouse 1,500 h. Architect fee for the design of the warehouse 24,500 1. Masonry, carpentry, roofing, and other labour to construct the warehouse 920,000 j. Renovation of the office building 50,200 k Interest cost on construction loan for warehouse 9,700 1. Landscaping (trees and shrubs) 8,200 m. Parking lot, concrete walks, and lights on the property 57,600 n. Concrete, wood, and other materials used in the construction of the warehouse 234,300 o Supervisory salary of construction supervisor (85% to warehouse, SX to land improvements, 10% to office building) 60,000 p. Office furniture 115,700 4. Transportation and installation of furniture 2,300 Assume MMS depreciates buildings over 40 years, land improvements over 20 years, and furniture over 8 years, all on a straight-line basis with zero residual value. Requirements: Set up columns for Land, and improvements, Warehouse, Office Building and Furniture. Show how to account for each of MMS's costs by listing the cost under the correct account. Determine the total cost of each asset, using the form given below. Assuming that all construction was complete, and the assets were placed in service on September 1, 2017, record depreciation for the year ended December 31, 2017. Round to the nearest dollar O 2 VA Pem ? % 5 = 6 7 8 2 9 3 0 YA in totected View Enable Editing Over VCUPERO Cure to the nearest dollar POD POD MEGO POWO Agent Land Land Improvement Watches a Office Building b C d e 1 m o Total O re wa W BE 29 A ? & k = 6 O YA 18 2 7 9 s 3
