Item 1: Entity A incurred the following during the year in which it constructed a new facility.

1. Real estate purchased as facility site

(seller valued land at $300,000 and building

at $40,000; Entity A demolished the existing building)

Entity A paid 10% down and the seller accepted a note for the

balance. $340,000

2. Accrued real estate taxes (owed by seller) paid at time

of purchase of real estate 8,000

3. Cost of demolition of building to make land suitable for

construction of a new building 32,000

4. Cost of filling and grading the land 7,700

5. Excavation costs for new building 21,900

6. Architects fees for new building plans 44,000

7. Full payment to building contractor 629,500

8. Cost of parking lots, driveways, landscaping 36,000

9. Proceeds from salvage of demolished building 12,700

List the items and amounts that make up the Land account. Be sure to provide a total.

Item 2: Equipment with a cost of $70,000 has an estimated salvage value of $7,000 and an estimated life of 6 years. Compute the annual depreciation and then show what this asset looks like on the balance sheet at the end of the second year (prepare a partial classified balance sheet showing the asset, accumulated depreciation, and book value).

Item 3: Equipment (vehicle) that cost $54,000 and on which $16,000 of accumulated depreciation has been recorded was disposed of for $40,000 cash. Make the entry to record this transaction. Hint: Compute BV and then gain (loss).

Item 4: Entity B bought equipment for $360,000 on January 1, 2022. It estimated the useful life to be 4 years with no salvage value, and the straight-line method of depreciation was used. On January 1, 2023, Entity B decides that it will use the equipment for a total of 6 years. Compute the revised depreciation expense for 2023 and make the entry to record depreciation expense. Show work.