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P9-30A Determining asset cost and recording partial-year depreciation, straight-line Discount Parking, near an airport, incurred the following costs to acquire land, make land improvements, and

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P9-30A Determining asset cost and recording partial-year depreciation, straight-line Discount Parking, near an airport, incurred the following costs to acquire land, make land improvements, and construct and furnish a small building a. Purchase price of three acres of land b. Delinquent real estate taxes on the land to be paid by Discount Parking c. Additional dirt and earthmoving d. Title insurance on the land acquisition e. Fence around the boundary of the property f. Building permit for the building g. Architect's fee for the design of the building h. Signs near the front of the property i. Materials used to construct the building j. Labor to construct the building k. Interest cost on construction loan for the building 1. Parking lots on the property m. Lights for the parking lots n. Salary of construction supervisor (80% to building: 20% to parking lot and concrete walks) 0. Furniture p. Transportation of furniture from seller to the building q. Additional fencing $ 80,000 6,300 9,000 3,200 9,600 1,000 20,700 9,300 215,000 175,000 9,400 28,500 11,200 50,000 11,200 2,200 6,600 Discount Parking depreciates land improvements over 15 years, buildings over 40 years, and furniture over 10 years, all on a straight-line basis with zero residual value. Turniture from seller to the building q. Additional fencing Discount Parking depreciates land improvements over 15 years, buildings years, and furniture over 10 years, all on a straight-line basis with zero res Plant Assets, Natural Resour Requirements 1. Set up columns for Land, Land Improvements, Building, and Furniture. Show how to account for each cost by listing the cost under the correct account. Determine the total cost of each asset. 2. All construction was complete and the assets were placed in service on October 1. Record partial-year depreciation expense for the year ended December 31. Round to the nearest dollar. P9-31A Determining asset cost, preparing depreciation schedules (3 methods), 1.1 obiectives

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