Spitfire Company was incorporated on January 2, 2015, but was unable to begin manufacturing activities until July 1, 2015, because new factory facilities were not completed until that date. The Land and Building account reported the following items during 2015. January 31 Land and building $167,000 February 28 Cost of removal of building 9,950 May 1 Partial payment of new construction 61,900 May 1 Legal fees paid 4,710 June 1 Second payment on new construction 40,400 June 1 Insurance premium 2,496 June 1 Special tax assessment 4,200 June 30 General expenses 37,200 July 1 Final payment on new construction 33,900 December 31 Asset write-up 61,200 422,956 December 31 Depreciation2015 at 1% 4,079 December 31, 2015 Account balance $418,877 The following additional information is to be considered. 1. To acquire land and building, the company paid $87,000 cash and 800 shares of its 8% cumulative preferred stock, par value $100 per share. Fair value of the stock is $118 per share. 2. Cost of removal of old buildings amounted to $9,950, and the demolition company retained all materials of the building. 3. Legal fees covered the following. Cost of organization $640 Examination of title covering purchase of land 1,790 Legal work in connection with construction contract 2,280 $4,710 4. Insurance premium covered the building for a 2-year term beginning May 1, 2015. 5. The special tax assessment covered street improvements that are permanent in nature. 6. General expenses covered the following for the period from January 2, 2015, to June 30, 2015. Presidents salary $32,800 Plant superintendents salarysupervision of new building 4,400 $37,200 7. Because of a general increase in construction costs after entering into the building contract, the board of directors increased the value of the building $61,200, believing that such an increase was justified to reflect the current market at the time the building was completed. Retained earnings was credited for this amount. 8. Estimated life of building50 years. Depreciation for 20151% of asset value (1% of $407,900, or $4,079). Prepare entries to reflect correct land, building, and depreciation accounts at December 31, 2015. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. Link to Text Show the proper presentation of land, building, and depreciation on the balance sheet at December 31, 2015. (Round answers to 0 decimal places, e.g. 5,275.) Spitfire Company Balance Sheet December 31, 2015 $ $ : $