The recognition of depreciation expense affects the

statement of changes in stockholders' equity

balance sheet

statement of cash flows

income statement

Lopez Company purchased land and a building for $$460,000$ cash. A real estate appraiser determined the fair market values are $$100,000$ for the land and $$400,000$ for the building. Based on this information, the cost of the

land should be established at $$100,000$

building should be established at $$368,000$

land should be established at $$92,000$

building should be established at $$400,000$