had been renting its office building for several years. On January 1, 2016, it decided to have a new office building constructed. On that date, it acquired land with an abandoned warehouse on it for $400,000. Other costs included the following. (Click the icon to view the data.) Required -C Requirement a. Indicate what balance should record in the following accounts for the acquisition: (i) land account, (ii) building account. (Use a minus sign or parentheses to show a decrease in the co Cost of land with abandoned warehouse Demolition of warehouse Legal fees for purchase of land Construction costs of new building Proceeds from salvage of warehouse materials Installation of wiring and plumbing fixtures Title guarantee insurance for fiscal year 2016 Architectural fees Total cost (i) Land (ii) Building Requirement b. Assume that the building was completed on December 31, 2016, and was occupied on that date. It has an estimated useful life of 40 years, with residual value of $100,000. Calculate dep final answers to the nearest dollar.) (i) Straight-line (ii) DDB Data Demolition of warehouse $ 24,000 Legal fees for purchase of land 1,300 Construction costs of new building 503,000 Proceeds from salvage of warehouse materials Installation of wiring and plumbing fixtures 6,000 9,000 Title guarantee insurance for fiscal year 2016 Architectural fees 2,100 28,000 Print Done allocated to one of the assets.) method (DDB). (Do not round any interim calculations. Round you 2017 Depreciation Requirement c. Assume that management decided to use straight-line depreciation for the building. By 2020 MC had grown considerably and needed to relocate for more space; it sold the land and building to Hummingbird Company on July 1, 2020, for $1,260,000. Assume depreciation expense has already been recorded for the first six months of the yea (Jan. 1, 2020, to June 30, 2020). Prepare all journal entries required relating to the land and building accounts on July 1, 2020. Prepare the compound entry to show the sale of the land and building on July 1, 2020. (Record debits first, then credits. Explanations are not required.) Date Jul. 1, 2020 Accounts Debit Credit