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. Fee paid to attorney for title search $3,600 a. b. Cost of real estate acquired as a plant site: Land 376,900 Building (to be demolished) 35,800 c. Delinquent real estate taxes on property, assumed by purchaser 21,200 d. Cost of tearing down and removing building acquired in (b) 5,900 Proceeds from sale of salvage materials from old bulilding 3,500* e. f. Special assessment paid to city for extension of water main to the property 14,100 g. Architect's and engineer's fees for plans and supervision 51,800 h. Premium on one-year insurance policy during construction 5,000 Cost of filling and grading land 20,700 J. Money borrowed to pay building contractor B83,800 k. Cost of repairing windstorm damage during construction 6,500 Cost of paving parking lot to be used by customers 17,900 m. Cost of trees and shrubbery pianted 10,600 n. Cost of floodlights installed on parking lot 1,200 o. Cost of repairing vandalism damage during construction 2,900 p. Proceeds from insurance company for windstorm and vandalism damage 7,100 7,100 P. Proceeds from insurance company for windstorm and vandalism damage 942,200 9. Payment to building contractor for new building 44,300 r. Interest incurred on building loan during construction 417* 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. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign. Item Account Amount a. b. C. d. e. t. 9. h. j. k. 1. m. n. O. p. 9. r. 5. 2. Determine the amount debited to Land, Land Improvements, and Building. Land Land Improvements Building 3. Since land used as a plant site improvements lose its ability to provide services, it lose their ability to provide services as time passes and are therefore depreciated. Land 4. What would be the effect on the current year's income statement and balance sheet if the cost of filling and grading land of $20,700 (payment (1)) was incorrectly classifled as Land Improvements rather than Land? Assume that Land Improvements are depreciated over a 20-year life using the double-declining-balance method.