Drive and Fly, near an airport, incurred the following costs to acquire land, make land improvements, and construct and furnish a small building:

Drive and Fly depreciates land improvements over 20 years, buildings over 40 years, and furniture over 10 years, all on a straight-line basis with zero residual value.

Requirements

1. Show how to account for each cost by listing the cost under the correct account. Determine the total cost of each asset.

Land \begin{tabular}{llllll} Item & Land & Improvements & Building & \multicolumn{1}{l}{ Furniture } \\ \hline a. & & & & \\ \hline \end{tabular} b. c. d. e. f. g. h. i. j. k. I. m. n. 0. p. q. Totals Data table a. Purchase price of three acres of land $80,000 b. Delinquent real estate taxes on the land to be paid by Drive and Fly c. Additional dirt and earthmoving d. Title insurance on the land acquisition e. Fence around the boundary of the property f. Building permit for the building g. Architect's fee for the design of the building h. Signs near the front of the property i. Materials used to construct the building j. Labor to construct the building k. Interest cost on construction loan for the building I. Parking lots on the property m. Lights for the parking lots 5,600 9,000 3,200 9,100 500 20,700 9,000 215,000 173,000 9,500 29,000 11,300 n. Salary of construction supervisor ( 80% to building; 20% to parking lot and concrete walks) o. Furniture p. Transportation of furniture from seller to the building q. Additional fencing