P0- IA In 2014, Creasor Company had the following transactions related to the purchase of a properifing All transactions were for cash unless otherwise stated. lan. 12 Purchased real estate for a future plant site for $420,000, paying $95,000 cash and signing a note payable for the balance. On the site, there was an old building, and the fair values of the land and building were $400,000 and $40,000, respectively. The old building will be demolished and a new one built. 16 Paid $8,500 for legal fees on the real estate purchase. 31 Paid $25,000 to demolish the old building to make room for the new plant. Feb, 13 Recelved $10,000 for materials salvaged from the demolished building. 28 Graded and filled the land in preparation for the construction for $9,000. Mar. 14 Paid $38,000in architect fees for the building plans. 31 Paid the local municipality $15,000 for building permits. Apr. 22 Excavation costs for the new building were \$17,000. Sept. 26 The construction of the building was completed. The full cost was $750.000. Paid $150,000 cash and signed a morigage note payable for the balance. Sept. 30 Purchased a one-year insurance policy for the building, \$4,500. Oct. 20 Paved the parking lots, driveways, and sidewalks for $45,000. Nov. 15 Installed a fence for $12,000. Instructions (a) Record the above transactions. (b) Determine the cost of the land, land improvements, and building that will appear on Creasori December 31, 2014, balance sheet. TAKING IT FUATHER When should Creasor start to record depreciation and on which assets