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G. Allocating Payments and Receipts to Fixed Asset Accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use

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G. 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. 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 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 Proceeds from sale of salvage materials from old building 3,400" h. Cost of filling and grading land 18,000 . Premium on one-year insurance policy during construction 8,400 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 n. Cost of trees and shrubbery planted 14,000 0. Cost of paving parking lot to be used by customers 21,600 Interest incurred on building loan during construction 40.000 Proceeds from insurance company for windstorm and vandalism damage 4,500" Daumant thing in hinn en eBook Calculator m. Cost of repairing vandalism damage during construction 2,000 n. 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 building loan during construction 40,000 Proceeds from insurance company for windstorm and vandalism damage 4,500" Payment to building contractor for new building 800,000 Refund of premium on insurance policy (1) canceled after 10 months 1,400* 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. 5. Item Account Amount b. eBook Calculator e. f. 9. h. i. k. L. m. n. 0. p. 2. Determine the amount debited to Land, Land improvements and Building. Land Land Improvements Building $ 3. Since and att Inca i ahility to inter deorelated and movements Check My Work 3 more Check My Work uses remaining eBook Calculator k. 1 m. n 0. q $ 2. Determine the amount debited to Land, Land Improvements, and Building, Land Land Improvements Building 3. Since land used as a plant ste lose its ability to provide services, it depreciated. Land improvements lose ther ability to provide services as time passes and are therefore 4. What would be the effect on the income statement and boyce sheet if the cost of paving the parking lot of $21,600 (payment (o)] was incorrectly classified as Land rather than Land Improvements Assume Land improvements are depreciated over a 10-yearfe using the double-declining balance method. Check My Work more Check My Work uses remaining Next

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