Question: 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:
Park and Fly depreciates land improvements over 20 years, buildings over 40 years, and furniture over eight years, all on a straight-line basis with zero residual value.
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 on October 1. Record partial-year depreciation expense for the year ended December 31.

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  • CreatedJune 15, 2015
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