Question: Determining the cost of assets Pawtucket Furniture purchased land, paying $75,000 cash plus a $290,000 note payable. In addition, Pawtucket paid delinquent property tax of $2,000, title insurance costing $3,500, and $7,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $350,000. It also paid $55,000 for a fence around the property, $12,000 for a sign near the entrance, and $10,000 for special lighting of the grounds.
Requirements: 1. Determine the cost of the land, land improvements, and building.
2. Which of these assets will Pawtucket depreciate?