The following payments and receipts are related to land, land improvements, and buldings acquired tor use in a wholesale ceramic business. The receipts are identilied by an asterisk next to the item letter. Required: 1. Assign each payment and receipt to Land (unlimited Ife), Land improvements (limited Mfe), Builling, or Other Acoounts in the table provided. Enter receipts as nogative amounts using the minus sign. 2. Defermine the amount debited to Land, Land improvements, and Building. 3. The costs assigned to the land, which is used as a plant site, wil nor be depreciated, white the costs assigned to land improvements wil be depreclated. Explain this seemingy contradictary applicatien of the concept of depreciation 4. What would be the effect on the income statement and balance sheot if the cost of rasing and grading land of $12,000 foayment (0) was incovrectly classihed as Land mprovements rather than Land? Assume Land improvements are depreciated over a 20.year It using the double decining-balance methad 1. Assign each payment and receipt to Land (unlimbed lfe), Land improvements (Jimited We), 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 Buiding. 3. The cosis assigned to the land, which is used as a plant site, wir not be depreciafed, while the costs assigned to Land improvements wiv be depreciated. Explain this seemingly contradictory application of the concept of depreciation. Since land used as a plant site lose its ability to provide services, it depreciated. Land improvernents lose their ability to provide services as time passes and are theredore 4. What woudd be the effect on the income statement and balance sheet if the cost of fining and grading kand of $12,000 (oayment (D) was incorrectly classked as Land improvements rather than Land? Assume Land improvements are depreciated over a 20-year afe using the double-dectining-batance method. The edlect would be that: Land improvements would be understated \& Dopreciation expense would be overstated. Depreciation expense would be understaled 8 Land improvements would be overstated. Depreciation expense would be overstated 8 Land would be overstated. Retained Earnings would be understated 8 Depreciation expense would be overstated. 3. The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to la depreciated. Explain this seemingly contradictory application of the concept of depreciation. Since land used as a pirant site ability to provide services as time passes and are therefore 4. What would be the effect on the income statement and balance sheet if the cost of fllling and grading land of $12,0 3. The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to la: depreciated. Explain this seemingly contradictory application of the concept of depreciation. Since land used as a plant site ability to provide services, it ovements is not is rovide services as time passes and are therefore 3. The cosis assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to lat depreciated. Explain this seemingly contradictory application of the concept of depreciation. Since land used as a plant site ability to provide services, it Land improvernents rovide services as time passes and are therefore do do not 3. The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to lat deprociated. Explain this seemingly contradictory application of the concept of depreciation. Since land used as a plant site ability to provide services, it Land improvements ability to provide services as time passes and are therefore