The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk next to the item letter. $ 2,600 309,800 52,200 14,145 5,100 3,920 30,085 57,190 5,640 11,840 921,000 5,230 30,540 11,510 2,060 2,675 7,605 729,000 34,580 470 Fee paid to attorney for title search Cost of real estate acquired as a plant site: Land Cost of real estate acquired as a plant site: Building a. b. c. Delinquent real estate taxes on property, assumed by purchaser d. Cost of razing and removing building e.* Proceeds from sale of salvage materials from old building f. Special assessment paid to city for extension of water main to the property g Architect's and engineer's fees for plans and supervision h. Premium on one-year insurance policy during construction i. Cost of filling and grading land j Money borrowed to pay building contractor k. Cost of repairing windstorm damage during construction I. Cost of paving parking lot to be used by customers m. Cost of trees and shrubbery planted n. Cost of floodlights installed on parking lot o Cost of repairing vandalism damage during construction p. Proceeds from insurance company for windstorm and vandalism damage q Payment to building contractor for new building r. Interest incurred on building loan during construction s. Refund of premium on insurance policy (h) canceled after 11 months Required 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts in the table provided. Enter receipts as negative amounts using the minus sign. 2. Determine the amount debited to Land, Land Improvements, and Building 3. The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation. 4. What would be the effect on the income statement and balance sheet if the cost of filling and grading land of S11,840 [payment () was incorrectly classified as Land Improvements rather than Land? Assume Land Improvements are depreciated over a 20-year life using the double-declining-balance method