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Lance Pharmacy, Inc., opened an office in Shoreview, Minnesota. Lance incurred the following costs in acquiring land, making land improvements, and constructing and furnishing the new sales building: B (Click the icon to view the financial data.) The company depreciates buildings over 30 years, land improvements over 15 years, and furniture over 12 years, all on a straight-line basis with residual values of zero. Read the requirements. Item Land Improvements Building Building Furniture Data Table a. b. C. a. d. e. Purchase price of land, including an old building that will be used for a garage (land market value is $325,000; building market value is $75,000).. Grading (leveling) land. Fence around the land $ 360,000 8,500 f. b. g. C. 31,800 III h. d. Attorney fee for title search on the land 900 i. e. 5,700 1,700 f. Enter any number in the edit fields and then click Check Answer. g. Delinquent real estate taxes on the land to be paid by Lance Pharmacy Company signs at entrance to the property Building permit for the sales building .. Architect fee for the design of the sales building Masonry, carpentry, and roofing of the sales building. 200 h. 43,250 parts remaining cle i. 511,000 Lance Pharmacy, Inc., opened an office in Shoreview, Minnesota. Lance incurred the following costs in acquiring land, making land improvements, and constructing and furnishing the new sales building: B (Click the icon to view the financial data.) The company depreciates buildings over 30 years, land improvements over 15 years, and furniture over 11 Data Table Read the requirements. Item Requirements a. 200 b. 43,250 C. 511,000 d. j. 41,490 e. 9,000 1. Identify the proper account (Land, Land Improvements, Sales Building, Garage Building, or Furniture) for each of the costs listed in the problem. Calculate the total cost of each asset. 2. All construction was complete and the assets were placed in service on April 2. Record depreciation for the year ended December 31. Round to the nearest dollar 3. Why would a manager need to understand the concepts covered in this problem? f. --- 6,000 g. Building permit for the sales building. h. Architect fee for the design of the sales building i. Masonry, carpentry, and roofing of the sales building. Renovation of the garage building ... k. Interest cost on construction loan for sales building. Landscaping (trees and shrubs)... m. Parking lot and concrete walks on the property. n. Lights for the parking lot and walkways . 0. Salary of construction supervisor (85% to sales building; 8% to land improvements; and 7% to garage building renovations) p. Office furniture for the sales building. q. Transportation and installation of furniture. g. 52,600 7,600 h. i. Print Done 43,000 Enter any ny 79,400 1,800 7 parts remaining
