P10-28a park and fly, near an airport, incurred the following costs

Park and Fly, near an airport, incurred the following costs to acquire land, make land improvements, and construct and furnish a small building: 

 

Purchase price of 3 acres of land ————- $60,000

Delinquent real estate taxes on the land to be paid by Park and Fly ———- 3,700

Additional dirt and earthmoving —————– 5,100

Title insurance on the land acquisition —————- 1,000

Fence around the boundary of the property ————— 44,200

Building permit for the building ———————– 200

g. Architect’s fee for the design of the building ——————– 5,000

Signs near the approaches to the property ————————– 20,900

Materials used to construct the building ——————————- 40,000

Labor to construct the building ———————– 30,000

Interest cost on construction loan for the building ——————- 3,800

Parking lots on the property ————————  120,000

Lights for the parking lot ———————- 8,900

Salary of construction supervisor (10% to building; 90% to parking lot) ——————— 50,000

Furniture ———————- 6,000

Transportation of furniture from seller to the building ————- 400

Landscaping (shrubs) ——————— 9,000

 

Park and Fly depreciates  land improvements over 20 years, buildings over 30 years, and furniture over 8 years, all on a straight-line basis with zero residual value.

 

Requirements:

 

1. Set up columns for Land, Land Improvements, Building, and Furniture.  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 in March 31.  Record partial-year depreciation for the year ended December 31.  

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