e. Allocating Payments and Receipts to Fixed Asset Accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ap business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $3,600 b. Cost of real estate acquired as a plant site: Land 720,000 Building (to be demolished) 60,000 C. Finder's fee paid to real estate agency 23,400 d. Delinquent real estate taxes on property, assumed by purchaser 15,000 Architect's and engineer's fees for plans for new building 75,000 f. Cost of removing building purchased with land in (b) 10,000 9. Proceeds from sale of salvage materials from old building 3,400* h. Cost of filling and grading land 18,000 1. Premium on one-year insurance policy during construction 8,400 1. Money borrowed to pay building contractor 800,000- k. Special assessment paid to city for extension of water main to the property 13,400 1. Cost of repairing windstorm damage during construction 3,000 m. Cost of repairing vandalism damage during construction 2,000 Cost of trees and shrubbery planted 14,000 0. Cost of paving parking lot to be used by customers 21,600 p. Interest incurred on bullding loan during construction 40,000 Previo Print Item 9. Proceeds from insurance company for windstorm and vandalism damage Payment to building contractor for new building Refund of premium on Insurance policy (1) canceled after 10 months Required: 4,500 800,000 1,400 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. Item Account Amount a. b. c. d. e. f $ g. h. 5 $ 1. 3 Previous Next k. I. m. n. 0. p. 9. s. 2. Determine the amount debited to Land, Land Improvements, and Building. Land Land Improvements Building 3. Since land used as a plant site lose its ability to provide services, it deprecated. 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 if the cost of paving the parking lot of $21,600 (payment (0)] was incorrectly classified as Land rather than Land Improvements? Assume Land Improvements are deprecated over a 10-year life using the double declining-balance method