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Spithre Company was incorporated on January 2, 2025, but was unable to begin manufacturing activities until July 1, 2025, because new factory facllities were not

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Spithre Company was incorporated on January 2, 2025, but was unable to begin manufacturing activities until July 1, 2025, because new factory facllities were not completed until that date. The Land and Buildings account reported the following items during 202.5. 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 8 cumulative preferred stock, par value $100 per share. Fair value of the stock is $117 per share. 2. Cost of removal of old buildings amounted to $9.800, and the demolition company retained all materials of the building. 3. Legal fees covered the following: 4. Insurance premium covered the building for a 2-year term beginning May 1,2025. 5. The special tak assessment covered street improvements that are permanent in nature. 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, 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 $53,800, believing that such an increase was justified to reflect the current market at the time the bullding was completed. Retained earnings was credited for this amount. 8. Estimated life of buliding- 50 years. Depreciation for 2025-1\% of asset value ( 1% of $400,000, or $4,000) ). (a) Prepare entries to reflect correct land, builidings, and depreciation accounts at December 31, 2025. (Round answers to 0 decimal ploces, es. 5,275. Credit occount tities are outometically indented when amount is entered. Do not indent manually. If no entry bs requilred, select "No Entry" for the occount titles and enter O for the amounts, Lst all debit entries before credit entries)

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