The following expenditures are related to land, land improvements, and buildings, which were acquired on Nov. 1, 2009.
Cost of real estate acquired for a new manufacturing plant 365,000
The land is appraised for 262,800 and the building for 102,200
Real estate taxes paid by the purchaser 20,000
Cost of removing a barn 8,500
Architect's fees for updating building 6,750
Attorney's fees for closing sale 12,500
Grading land 3,500
Paving parking lot 7,000
Planting trees and shrubs 9,250
Cost of repairs to building due to storm during construction 1,300
Lights placed on driveway 4,750
Fee to real estate broker 2,500
Required: Determine the cost of the land, the building and the improvements (round to nearest dollar). Prepare journal entries on Dec. 31, 2009 for depreciation assuming the building will have a useful life of 25 years and no residual value. Use straight line balance method. Depreciate the land improvements using straight-line method, for a 15 year life, to the nearest month with zero residual value (to the nearest dollar).
a. The cost of the land is?
b. The cost of the building is?
c. The cost of the land improvements is?
d. Journal entries for depreciation entries.