Question: Determining asset cost and recording partial-year depreciation Park and Go, near an airport, incurred the following costs to acquire land, make land improvements, and construct and furnish a small building:
Park and Go depreciates land improvements over 25 years, buildings over 40 years, and furniture over 12 years, all on a straight-line basis with zero residual value.
Requirements: 1. Show how to account for each cost by listing the cost under the correct account. Determine the total cost of each asset.
2. All construction was complete and the assets were placed in service on July 1. Record partial-year depreciation for the year ended December 31.