Hi,

Could you help me to solve this question?

It's an 2nd year university accounting question.

Part A (16 marks) site consisting of land ired a new he o on 1, 2013 KJFI nd signed a non- and a bul Ing a a price 0 500,00 KJF pai 100 00 O n January 1, ay the remainin FF-fZb-Fi1 romisso no e 016 he market Interest rate i 8% The site required some renovations o ma e it fit KF'STd.The renovations cost $32,000 and they were completed just in time for KJF's grand opening on April 1, 2013. KJF also paid $5,000 in legal fees and $10,000 in back taxes specific to the land, and $8,000 to an architect for renovation plans. The owner of KJF is happy because a recent appraisal suggested the land's value is now $240,000 and the building's value is $360,000. Required a. Calculate the amounts that should be included in the land account and the amounts that should be included in the building account for KJF prior to any depreciation in 2013. Provide the related journal entry (or entries) that should be recorded for these transactions. b. i) The building is expected to Jast for 25 years and it will have a residual value of $20,000. Calculate depreciation expense for the 2013 fiscal year end and provide the related journal entry. Assume KJF uses the straight-line method to calculate depreciation. ii) Provide the December 31, 2013 journal entry related to KJF's note payable (if any). c. Ignore your answers to part (b) and assume that KJF uses the double- declining-balance method to record depreciation. Calculate KJF's depreciation expense for the 2014 fiscal year end.