For each item below, indicate how Starr Company would record it by placing the amount in the proper column.

1. Paid $100,000 for land to be used as a factory site. The company also incurred legal costs of $15,000 in connection with the purchase.

2. Paid $50,000 to clear an existing building from the property and received $12,000 for salvaged materials.

3. Cleared the land at a cost of $20,000.

4. Paid $25,000 to an architect for the factory plans.

5. Paid $3,000,000 to a contractor to build the factory. Paid $15,000 for insurance during construction period and $12,000 for insurance for first year of operations.

6. Paid $26,000 to pave parking lot. Estimated life of 20 years.

7. Paid $600,000 for manufacturing equipment, paid $6,000 for transportation costs and $5,000 for installation. Paid $500 to repair equipment that was dropped during installation.

	Land	Land Improvements	Building	Equipment	Other Asset or Expense
1
2
3
4
5
6
7
Totals