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Business, 26.08.2020 14:01 QuestionsAnsweredNow

The following expenditures are related to land, land improvements, and buildings, which were acquired on November 1, 2013.Cost of real estate acquired for a new manufacturing plant 365000The land is appraised for 262,800 and the building for 102,200Real estate taxes paid by the purchaser 20,000Cost of removing barn 8,500Architect fees for updating building 6750Attorneys fees for closing sale 12500Grading land 3500paving parking lot 7000planting trees and shrubs 9250cost of repairs to building due to storm 1300lights placed on driveway 4750fee to real estate broker 25001: Determine the cost of the land, the building and the improvements (Round to the nearest dollar)2: Prepare journal entries on December 31, 2013 for depreciation assuming the building will have a useful life of 20 years and no residual value. Use double declining balance method and the half-year convention. 3: Depreciate the land improvements using straight-line method, a 5 year life, to the nearest month with zero residual value (to the nearest dollar).

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