Response to the following problem:
Lone Star Lighting Systems purchased land, paying $80,000 cash as a down payment and signing a $120,000 note payable for the balance. In addition, Lone Star paid delinquent property tax of $2,100, title insurance costing $2,500, and a $5,400 charge for leveling the land and removing an unwanted building. The company constructed an office building on the land at a cost of $800,000. It also paid $51,000 for a fence around the property, $10,400 for the company sign near the entrance, and $6,000 for special lighting of the grounds.
Determine the cost of the company's land, land improvements, and building. Which of the assets will Lone Star depreciate?