Follow the format to answer E10-8 on the THIRD IMAGE.

(LO 2, 4) E10-8 (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improve- ments, and buildings that were acquired for use in a business enterprise. The receipts are in parentheses. 1. Money borrowed to pay a building contractor (signed a note), ($275,000) . A payment for building construction from note proceeds, $2 75,000 . The cost of landll and clearing, $8,000 . Delinquent real estate taxes on property, assumed by the purchaser, $7,000 . A premium on a six-month insurance policy during construction, $6,000 . Refund of one month's insurance premium because construction was completed early, ($1,000) . An architect's fee on a building, $22,000 . The cost of real estate purchased as a plant site (land $200,000, building $50,000), $250,000 . A fee paid to a real estate agency for nding the property, $9,000 relating to the land purchase (see 8) \\DW'JGNU'I-DIWN H a . The installation of fences around a property, $4,000 p.- H . The cost of racing (demolishing) and removing the building on the plant site (see 8), $11,000 . Proceeds from the salvage of the demolished building, ($5,000) . Interest paid during construction on money borrowed for construction, $13,000 HHH .hwlu . The cost of parking lots and driveways, $19,000 H U] . The cost of trees that were planted (nonpermanent in nature, to be replaced every 20 years), $14,000 16. Excavation costs for new building, $3,000 17. The recoverable CST on the excavation cost, $150 Instructions Identify each item by number and list the items in columnar form, as shown below. Using the column headings that follow, write the number for each item in the rst column and its amount under the column heading where it would be recorded. All receipt amounts should be reported in parentheses. For any amounts that should be entered in the Other Accounts column, also indicate the account title. Land Improvements Building Other Accounts m \f*Exercise 10-8 The following expenditures and receipts are related to land, land improvements, and buildings that were acquired for use in a business enterprise. The receipts are in parentheses. 1. Money borrowed to pay a building contractor (signed a note), ($274,820) 2. A payment for building construction from note proceeds, $274,700 3. The cost of landfill and clearing, $7,640 4. Delinquent real estate taxes on property, assumed by the purchaser, $6,890 5. A premium on a six-month insurance policy during construction, $5,680 6. Refund of one month's insurance premium because construction was completed early, ($780) 7. An architect's fee on a building, $21,740 8. The cost of real estate purchased as a plant site (land $199,980; building $49,990), $249,970 9. A fee paid to a real estate agency for finding the property, $8,580 relating to the land purchase (see 8) 10. The installation of fences around a property, $3,820 11. The cost of razing (demolishing) and removing the building on the plant site (See 8), $10,780 12. Proceeds from the salvage of the demolished building, ($4,650) 13. Interest paid during construction on money borrowed for construction, $12,600 14. The cost of parking lots and driveways, $18,690 15. The cost of trees that were planted (non-permanent in nature, to be replaced every 20 years), $13,930 16. Excavation costs for new building, $2,730 17. The recoverable EST on the excavation cost, $120 Identify each item by number and list the items in columnar form, as shown below. Using the column headings that follow, enter the amount under the column heading where it would be recorded. (Show the receipts in using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).) Land Other Item Land 1m movements Building Accounts 10. 11. 12. 13. 14. 15. 16. 17