In 2017, Nobles Company paid $975,000 for real estate that included a tract of land on which two buildings were located. The plan was to demolish Building A, and build a new store in its place. Building B was to be used as a company office, and was appraised to have a value of $315,000, with a useful life of 20 years, and a $45,000 scrap value. A lighted parking lot near Building B had improvements valued at $105,000 that were expected to last another five years, and have no salvage value. In its existing condition, the tract of land was estimated to have a value of $630,000.

Nobles company incurred the following additional costs: (a) Cost to demolish Building A, to make the Land useable............. $71,250 (b) Cost to landscape new building site............................................ $81,000 (landscaping was predicted to last 20 years, no scrap value) (c) Cost to build new building (Building C) on former site of Building A, having a useful life of 25 years, and a $75,000 scrap value.................................................................................. $1,125,000 (d) Cost of new land improvements for Building C, which have an 8-year useful life, and no scrap value.......................................... $187,500

i) Prepare a form having the following headings: Land, Building B, Building C, Land Improvements B, and Land Improvements C. Allocate the costs incurred by Noble Company to the appropriate columns and total each column. ii) Prepare a single journal entry dated July 1, 2017, to record all of the costs incurred, assuming they were all paid in Cash. iii) Prepare December 31, 2017, adjusting entries to record depreciation for the months during 2017 that the assets were in use. Use straight-line depreciation for your calculations.