C8-2 Rolling Fields Retirement Homes Rolling Fields Retirement Homes purchased land to use for a planned assists tion of the sale, a title search had to be performed and a survey completed. Ko to be torn down, and a rocky hill in the middle of the property had to be levelled. water mains, storm drains, and sewers through the planned community also street lighting had to be installed and green spaces for recreation and rest se for a planned assisted-living community. As a condi- a survey completed. Rolling Fields incurred both these a barn that was on the land when it was purchased had property had to be levelled. A series of streets, sidewalks, planned community also had to be constructed. Finally, alled and green spaces for recreation and rest had to be landscaped. struction of new homes began. The homes are to be rented on a long-term basis to elderly residents who no longer feel do not yet need nursing home care. Rolling Fields will be re- air costs associated with the properties. By the end of the year, id 30 homes had been constructed and were occupied. The average cost of each owned by Rolling Fields and will be rented on a long-term basis to elden they can live completely on their own but do not yet need nursing home care. sponsible for all the maintenance and repair costs associated with the properties. Phase 1 was complete, and 30 homes had been constructed and were occupie home was $180,000. In the first year, repair and maintenance costs averaged $1.200 ner property. The company also DOL rowed $4 million to finance the construction of the homes. Interest on the loan for the year was DJ00,000. Required a. Determine which of the above expenditures should be capitalized. b. For the expenditures that should be capitalized, identify the appropriate account to which the costs should be charged. c. For the expenditures that should be capitalized, discuss how each asset class should be depreciated