Land Land improvements Buildings Equipment (Hint: Disregard the related accumulated depreciation accounts.) (b) List the items in the fact situation that were not used to determine the answer to (a), pertinent amounts and supporting computations in good form for each item. In addition, indicate or if, these items should be included in Lobo's financial statements. >D P03 aassification of Land and Building Costs) Spitfire Company was incorporated on January 2 3 2016, but was unable to begin manufacturing activities until July 1, 2016, because new factory facilities were not completed until that date. 5 The Land and Buildings account reported the following items during 2016 January 31 February 28 May 1 May 1 June 1 June 1 June 1 June 30 July 1 December 31 Land and building Cost of removal of building Partial payment of new construction Legal fees paidt newcostruction Second payment on new construction Insurance premium Special tax assessment General expenses Final payment on new construction Asset write-up 160,000 9,800 60,000 3,770 40,000 2,280 4,000 36,300 30,000 53,800 399,950 4,000 December 31 December 31, 2016 Depreciation-2016 at 1% Account balance 395,950 The following additional information is to be considered. I. To acquire land and building, the company paid 80,000 cash and 800 shares of its 8% preference shares, par value 100 per share. The shares trade in an active market at 117 per share. 2. Cost of removal of old buildings amounted to 9,800, and the demolition company retained all materials of the building. 3. Legal fees covered the following. Land Land improvements Buildings Equipment (Hint: Disregard the related accumulated depreciation accounts.) (b) List the items in the fact situation that were not used to determine the answer to (a), pertinent amounts and supporting computations in good form for each item. In addition, indicate or if, these items should be included in Lobo's financial statements. >D P03 aassification of Land and Building Costs) Spitfire Company was incorporated on January 2 3 2016, but was unable to begin manufacturing activities until July 1, 2016, because new factory facilities were not completed until that date. 5 The Land and Buildings account reported the following items during 2016 January 31 February 28 May 1 May 1 June 1 June 1 June 1 June 30 July 1 December 31 Land and building Cost of removal of building Partial payment of new construction Legal fees paidt newcostruction Second payment on new construction Insurance premium Special tax assessment General expenses Final payment on new construction Asset write-up 160,000 9,800 60,000 3,770 40,000 2,280 4,000 36,300 30,000 53,800 399,950 4,000 December 31 December 31, 2016 Depreciation-2016 at 1% Account balance 395,950 The following additional information is to be considered. I. To acquire land and building, the company paid 80,000 cash and 800 shares of its 8% preference shares, par value 100 per share. The shares trade in an active market at 117 per share. 2. Cost of removal of old buildings amounted to 9,800, and the demolition company retained all materials of the building. 3. Legal fees covered the following
