Spitfire Company was incorporated on January 2.2025 but was unable to begin manufacturing activities until July 1, 2025, because new factory facilities were not completed until that date The Land and Buildings account reported the falling during 2025 January 31 February 20 Land and buildings $500.000 Cost of removal of building 9,000 May 1 Partial payment of new construction 60.000 May 1 Legal fees paid 2770 June 1 Second payment on new construction 40.000 June 1 Insurance premium 2290 June 1 Special toxament 4.000 June 30 General expens $6,300 July 1 Final payment on new construction 30.000 December 31 Aset write-up $3.00 December 31 Depreciation-2025 a 14.000 December 31.2025 Account balance $395.950 The following additional information is to be considered 1. To acquire land and building, the company paid $80,000 cash and 800 shares of its cumulative preferred stock, par value 5100 per share Fair value of the stack is $117 per 2 Cest of removal of aid buildings amounted to $9.800 and the demolition company retained all materials of the building 3. Legal fees covered the following Cost of organization 5630 Examination of title covering purchase of land 1300 Legal work in connection with construction contract 1860 53770 Insurance premium covered the building for a 2-year term beginning May 1.2025 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, 2025 to June 30, 2025 $32.500 President's salary Plant superintendent's salary-supervision of building 4.200 $36.300 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 $52,800 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 Estimated life of building-50 years. Depreciation for 2025-1% of asset value (% of $400,000 or $4,000) (a) Prepare entries to reflect correct land, buildings, and depreciation accounts at December 31, 2025. (Round swers to decimal places eg 5,275. Credit account sites are automatically indented when amount is entered. Do not indent manually. If no entry is required $36,300 7. 8 Because of a general increase in construction costs after entering into the building contract, the board of directors increased the value of the building $53,800, 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. Estimated life of building-50 years. Depreciation for 2025-1% of asset value (1% of $400,000, or $4,000) (a) Prepare entries to reflect correct land, buildings, and depreciation accounts at December 31, 2025. (Round answers to 0 decimal places, eg. 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 O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation Debit Credit L 2