The following cases are independent Case A Starling Ltd. bought a building for $1,060,000. Before using the building, the following expenditures were made: $ 105,000 27.500 Repair and renovation of building Construction of new paved driveway Upgraded landscaping Wiring Deposits with utilities for connections Sign for front and back of building, attached to roof Installation of fence around property 4,200 16,000 2,500 13,000 14,000 Case B Lark Company purchased a $32,500 tract of land for a new manufacturing facility. Lark demolished an old building on the property and sold the materials it salvaged from the demolition. Lark incurred additional costs and realized salvage proceeds as follows Demolition of old building Routine maintenance (mowing) done on purchase Proceeds from sale of salvaged materials Legal fees Title guarantee insurance $31,000 2,500 11,200 9,000 5.600 Required: 1. What balance would Starling report in the building account? Balance in building account 2. What balance should Lark report in the land account? What balance should Starling report in the Land improvements account? Balance in land account Balance in land improvements