Determining Cost of Assets P 6. Global Company was formed on January 1, 2010, and began constructing aninvianadiscturess.An732, Global Company sold the timber it cleared from the land to a firewood dealer for $7,000. This amount was credited to Miscellaneous Income. During the construction period, two of Global's supervisors devoted full time to the construction project. Their annual salaries were $51,000 and $39,000, respectively. They spent two months on the purchase and preparation of the land, six months on the construction of the building (approximately one-sixth of which Was devoted to improvements on the grounds), and one month on machinery installation. When the plant began operation on October 1, the supervisors returned to their regular duties. Their salaries were debited to Factory Salaries Expense. Chapter Assignments 515 Required 1. Prepare a schedule with the following column headings: Land, Land Improvements, Buildings, Machinery, and Expense. Place each of the above expenditures in the appropriate column. Negative amounts should be shown in parentheses. Total the columns. 2. What impact does the classification of the items among several accounts have on evaluating the profitability performance of the company