Park and Go depreciates land improvements over 20 years, buildings over 50 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 July 1. Record partial-year depreciation expense for the year ended December 31.