ebook Calculator Printiem 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 apparel business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $3,400 b. Cost of real estate acquired as a plant site: Land 355,200 Building (to be demolished) 33,700 c. Finder's fee paid to real estate agency 20,000 d. Delinquent real estate taxes on property, assumed by purchaser 5,600 e. Architect's and engineer's fees for plans for new building 3,300 Cost of removing building purchased with land in (b) 13,300 Proceeds from sale of salvage materials from old building 48,800 h. Cost of illing and grading land 4,700 Premium on one-year insurance policy during construction 19,500 1. Money borrowed to pay building contractor 832,900 Special assessment paid to city for extension of water main to the property 6,100 1. Cost of repairing windstorm damage during construction 16,900 m. Cost of repairing vandalism damage during construction 10,000 n. Cost of trees and shrubbery planted 1,200 a. Cost of paving parking lot to be used by customers 2,800 p. Interest incurred on building loan during construction 6,700 4. Proceeds from insurance company for windstorm and vandalism damage 41,700 F. Payment to building contractor for new building 888,000 Refund of premium on insurance policy ) canceled after 11 months Check My Work Next >> Email instructor Save and Exit Sume Assirent for Grading eBook Calculator Print item ROSTORU PODGORICUSSIO NS Required: 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 Land 3,600 x Land Building Land Land Land v Building Other Accounts Land Other Accounts Other Accounts Land Improvements Land Improvements Building Other Accounts Check My Work Next > mal instructor Save and Submit Assignment for Grading eBook Print Item Calculator Other Accounts Land Other Accounts Other Accounts Land Improvements Land Improvements Building Other Accounts Building Building 2. Determine the amount debited to Land, Land Improvements, and Building. Land Land Improvements Building depreciated. Land improvements de lose their ability to provide 3. Since land used as a plant site does not lose its ability to provide services, it is not services as time passes and are, therefore, depreciated . 4. What would be the effect on the income statement and balance sheet the cost of filling and grading land of $19,500 (payment () was incorrectly classified as Land Improvements rather than Land? Assume Land Improvements are depreciated over a 20-year life using the double-declining balance method. Depreciation expense would be overstated and improvements would be overstated Next) Save and En Submit Assignment for Grading