Exercise 10-1 The expenditures and receipts below are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. Money borrowed to pay building contractor (signed a (a) note) $(284,500) Payment for construction from note proceeds Cost of land fill and clearing Delinquent real estate taxes on property assumed by purchaser (b) 284,500 (c) 10,920 7,730 e) Premium on 6-month insurance policy during 8,520 construction Refund of 1-month insurance premium because (1,420) construction completed early Architect's fee on building Cost of real estate purchased as a plant site (land $202,500 and building $59,700) (9) 25,560 262,200 8,260 3,780 11,250 (5,360) 3,900 17,690 13,230 2,870 () Commission fee paid to real estate agency Installation of fences around property Proceeds from salvage of demolished building borrowed for construction () Cost of razing and removing building (m) Interest paid during construction on money (n) Cost of parking lots and driveways (o) (P) Cost of trees and shrubbery planted (permanent in Excavation costs for new building