Question: Determining asset cost and recording partial-year depreciation Airport Parking, near an airport, incurred the following costs to acquire land, make land improvements, and construct and furnish a small building:
Airport Parking depreciates land improvements over 20 years, buildings over 30 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 September 1. Record partial-year depreciation for the year ended December 31.