There are two parts to this problem a) b) A company made the following expenditures in connection with the construction of a new building Architects fees $12,000 Cash paid for land and unusable building on the land 300,000 Removal of old building 18,000 Salvage from sale of old building materials 4,000 Construction survey 1,500 Legal fees for title search 3,000 Excavation for basement construction 25,000 Machinery purchased for operations 100,000 Freight on machinery purchased 1,600 Construction costs of new building 1,000,000 Construction of parking lot and driveway 33,000 Install perimeter fencing 7,500 Installation of machinery 2,500 a) Required Prepare a schedule showing the amounts to be recorded as Land, Land Improvements, Buildings, and Machinery (See pages 355 356 Cost Determination for how to determine) Land Land Improv Buildings Machinery Architects fees Cash paid for land and unusable building on the land Removal of old building Salvage from sale of old building materials Construction survey Legal fees for title search Excavation for basement construction Machinery purchased for operations Freight on machinery purchased Construction costs of new building Construction of parking lot and driveway Install perimeter fencing Installation of machinery Useful life Indefinate 15 years 40 years 10 years Salvage $5,000 $250,000 $25,000 Depreciation method DDB SL DDB (DDB double declining balance, SL straight line) Assume that all assets are put in service on 7 1 16 b) Required Calculate straight line for the Building in 2016 2017 Prepare depreciation schedules for the life of Land Improvements Machinery (Round everything to a dollar) (Straight line is on pages 358 359) (Double Declining Balance is on pages 360 361) (Partial year depreciation page 362) Building 2016 2017 Land Improvements 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Machinery 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 PLEASE show how you calculated the answer so it is easier to understand, thank you

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Question: There are two parts to this problem a) & b) A company made the following expenditures in connection with the construction of a new building:

There are two parts to this problem a) & b)

A company made the following expenditures in connection with the construction of a new building:

Architects fees	$12,000
Cash paid for land and unusable building on the land	300,000
Removal of old building	18,000
Salvage from sale of old building materials	-4,000
Construction survey	1,500
Legal fees for title search	3,000
Excavation for basement construction	25,000
Machinery purchased for operations	100,000
Freight on machinery purchased	1,600
Construction costs of new building	1,000,000
Construction of parking lot and driveway	33,000
Install perimeter fencing	7,500
Installation of machinery	2,500

a) Required: Prepare a schedule showing the amounts to be recorded as Land, Land Improvements, Buildings, and Machinery.
(See pages 355 &356 Cost Determination for how to determine)
	Land	Land Improv	Buildings	Machinery
Architects fees
Cash paid for land and unusable building on the land
Removal of old building
Salvage from sale of old building materials
Construction survey
Legal fees for title search
Excavation for basement construction
Machinery purchased for operations
Freight on machinery purchased
Construction costs of new building
Construction of parking lot and driveway
Install perimeter fencing
Installation of machinery


Useful life	Indefinate	15 years	40 years	10 years
Salvage		$5,000	$250,000	$25,000
Depreciation method		DDB	SL	DDB
(DDB - double declining balance, SL - straight line)
Assume that all assets are put in service on 7-1-16

b) Required: Calculate straight line for the Building in 2016 & 2017
Prepare depreciation schedules for the life of Land Improvements & Machinery (Round everything to a dollar)
(Straight-line is on pages 358 & 359) (Double Declining Balance is on pages 360 & 361) (Partial year depreciation - page 362)

Building
2016
2017



Land Improvements

2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031

Machinery

2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026 PLEASE show how you calculated the answer so it is easier to understand, thank you!

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