Question: Case A Starling Ltd . bought a building for $ 1 , 4 9 0 , 0 0 0 . Before using the building, the

Case A Starling Ltd. bought a building for $1,490,000. Before using the building, the following expenditures were made: Repair and renovation of building $ 185,000 Construction of new paved driveway 26,900 Upgraded landscaping 4,300 Wiring 20,000 Deposits with utilities for connections 2,550 Sign for front and back of building, attached to roof 16,650 Installation of fence around property 16,500 Case B Lark Company purchased a $38,800 tract of land for a new manufacturing facility. Lark demolished an old building on the property and sold the materials it salvaged from the demolition. Lark incurred additional costs and realized salvage proceeds as follows: Demolition of old building $ 33,650 Routine maintenance (mowing) done on purchase 2,550 Proceeds from sale of salvaged materials 15,600 Legal fees 9,700 Title guarantee insurance 5,750 Required: 1. What balance would Starling report in the building account? 2. What balance should Lark report in the land account? What balance should Starling report in the Land improvements account? 3. This part of the question is not part of your Connect assignment.

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