Ogden Systems purchased land, paying $ 110,000 cash as a down payment and signing a $ 140,000 note payable for the balance. In addition, Ogden Systems paid delinquent property tax of $ 1,500, title insurance costing $ 3,500, and a $ 10,400 charge for levelling the land and removing an unwanted building. The company constructed an office building on the land at a cost of $ 600,000. It also paid $ 46,000 for a fence around the property, $ 7,000 for the company sign near the entrance, and $ 5,000 for special lighting of the grounds.
Requirements
1. Determine the cost of the company’s land, land improvements, and building.
2. Which of the assets will Ogden depreciate?