PR 9-1A. Allocating Payments and Receipts to Fixed Asset Accounts Obj. 1 The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk Penye 1000 . Dengan prosed by purchase Com o ing wrong Prostore 60 000 A growns and be mun www Con More 12 son Copy Wedne 2 750 Comorowon 500 where INSTRUCTIONS 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicato receipts by an asterisk. Identity each item by letter and list the amounts in columnar form, as follows: nem Land increment tine Ace 2. Determine the amount debited to Land, Land Improvements, and Building - The costs assigned to the land, which is used as a plant ste, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation 3 4. What would be the effect on the income statement and balance sheet if the cost of filing and grading land of $12.000 (payment was incorrectly classified as Land improvements rather than Land? Assume Land improvements are depreciated over a 20-year ide using the double declining balance method. a PR 9-1A. Allocating Payments and Receipts to Fixed Asset Accounts Obj. 1 The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk Penye 1000 . Dengan prosed by purchase Com o ing wrong Prostore 60 000 A growns and be mun www Con More 12 son Copy Wedne 2 750 Comorowon 500 where INSTRUCTIONS 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicato receipts by an asterisk. Identity each item by letter and list the amounts in columnar form, as follows: nem Land increment tine Ace 2. Determine the amount debited to Land, Land Improvements, and Building - The costs assigned to the land, which is used as a plant ste, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation 3 4. What would be the effect on the income statement and balance sheet if the cost of filing and grading land of $12.000 (payment was incorrectly classified as Land improvements rather than Land? Assume Land improvements are depreciated over a 20-year ide using the double declining balance method. a