V Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search b. Cost of real estate acquired as a plant site: Land Building (to be demolished) c. Finder's fee paid to real estate agency d. Delinquent real estate taxes on property, assumed by purchaser e. Architect's and engineer's fees for plans for new building f. Cost of removing building purchased with land in (b) g. Proceeds from sale of salvage materials from old building h. Cost of filling and grading land i. Premium on 1-year insurance policy during construction j. Money borrowed to pay building contractor k. Special assessment paid to city for extension of water main to the property 1. Cost of repairing windstorm damage during construction m. Cost of repairing vandalism damage during construction n. Cost of trees and shrubbery planted o. Cost of paving parking lot to be used by customers p. Interest incurred on building loan during construction $3,100 327,700 31,100 18,400 5,200 3,100 12,300 45,100* 4,300 18,000 768,500* 5,700 15,600 9,300 1,100 2,500 6,100

Allocating parments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited Ife), 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. 4. vetermine the amount debited to Land, Land Improvernents, and Building. 4. What would be the effect on the income statement and balance sheet if the cost of filling and grading land of $18,000 [payment (I)] was incorrectiy classified as Land Improvements rather than Land? Assume Land Improvements are depreciated over a 20 -year life using the double-declining-balance method