Item 1: Entity A incurred the following plant asset expenditures in during the year.

1. Real estate purchased as plant site

(land $190,000 and building $80,000) $270,000

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

of purchase of real estate 6,000

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

construction of new building 32,000

4. Cost of filling and grading the land 6,700

5. Excavation costs for new building 21,900

6. Architects fees on 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.

The Items and amount that make up the land account:

Cost of Real Estate	270000
Accrued taxes	6000
Cost of demolishing Building	32000
Proceeds from salvage	-12700
Total	295300

Cost of parking lots - Land improvement cost

Item 2: Equipment with a cost of $440,000 has an estimated salvage value of $40,000 and an estimated life of 8 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).

I just need the second part answered. Thank you!