P9.1A (LO 1) AP In 2024, Kadlec Company had the following transactions related to the purchase of a property. All transactions were for cash unless othen stated. Jan. 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. 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 Received $10,000 for residual materials from the demolished building. 28 Graded and filled the land in preparation for the construction for $9,000. Mar. 14 Paid $38,000 in architect fees for the building plans. 31 Paid the local municipality $15,000 for building permits. Apr. 22 Paid excavation costs for the new building of $17,000. Sept. 26 The construction of the building was completed. The full cost was $750,000. Paid $150,000 cash and signed a mortgage 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 Kadlec's December 31,2024 , balance sheet. Taking It Further When should Kadlec start to record depreciation and on which assets? Allocate cost and calculate partial-period depreciation