Item $1$: Entity A incurred the following plant asset expenditures in during the year in connection with opening a new donut shop. Indicate whether each should be classified as Land $($L$),$ Land Improvements $($LI$),$ Buildings $($B$)$ or Equipment $($E$),$ or none of these $($X$).$ Use CAPITAL letters.

Unpaid past property taxes assumed on the land acquired

Parking lot

Utility costs associated with the donut shop during the first month of operation

Excavation costs $($for the shop foundation$)$

Tear down costs of old building that was demolished to make way for the donut shop

Lighting$/$signs for the parking lot

Apple point of sale terminals

Interest on building construction loan

Item $2$: Entity B purchased equipment for $$180,000$ on January $1,2024$ with an estimated salvage value $$30,000$ and a five$-$year useful life. Compute the annual depreciation and then show what this asset looks like on the balance sheet at the end of the third year $($prepare a partial classified balance sheet$).$ Show your work.

Item $3$: On January $1,2020,$ Entity C purchased a used vehicle at a cost of $$28,000.$ Entity A depreciated it using the straight$-$line method using a $4-$year service life and a salvage value of $$4,000.$ Unable to sell it$,$ on January $1,2024,$ Entity C retired and scrapped the vehicle. Make the entry to record the January $1,2024$ transaction. Hint Compute book value at time of disposal and then gain $($loss$).$ Show your work.

Item $4$: Entity D bought equipment for $$56,000$ on January $1,2024.$ It estimated the useful life to be $10$ years with no salvage value, and the straight$-$line method of depreciation was used. On January $1,2025,$ Entity D decides that it will use the equipment for a total of $7$ years. Compute the revised depreciation expense for $2025$ and make the entry to record depreciation expense. Show your work.