The following costs were incurred to acquire and prepare land for a new parking lot: purchase price of land, $900,000; cost to clear the land, $40,000; cost of paving, 535,000; and cost of lighting for the parking lot, $20,000. How much should be recorded in the land Improvements account? On. $40.000 Ob. $35.000 Oc. $55.000 Od. $20,000 Fitness Department purchased a building on a tract of land and allocated the entire cost of the purchase to building. Normally the company depreciates buildings over 40 years using the straight-line method with zero residual value and does not depreciate land. What the impact of the improper accounting treatment of the purchase on the company's net income for the life of the building? Oa. unaffected Ob. overstated Oc. understated Od. Indeterminable from the information provided in year 1. Fisher Apartments purchased an apartment building to rent to university students. It cost the company $250 to fix damage done by a tenant to one of its units. How should this cost be treated? Oa. It should be recorded as a repair maintenance expense. Ob. It should not be recorded because the tenants will be charged for the damage Oc. It should be recorded as part of the asset account Od. It should not be recorded because this amount is in material to the landlord