Question

PiercePierce

Furniture purchased​ land, paying

$ 75 comma 000$75,000

cash and signing a

$ 310 comma 000$310,000

note payable. In​ addition,

PiercePierce

paid delinquent property tax of

$ 1 comma 000$1,000​,

title insurance costing

$ 5 comma 000$5,000​,

and

$ 4 comma 000$4,000

to level the land and remove an unwanted building. The company then constructed an office building at a cost of

$ 600 comma 000$600,000.

It also paid

$ 46 comma 000$46,000

for a fence around the​ property,

$ 16 comma 000$16,000

for a sign near the​ entrance, and

$ 8 comma 000$8,000

for special lighting of the grounds.

1. Determine the cost of the​ land, land​ improvements, and building.

2. Which of these assets will PiercePierce ​depreciate?

Answer 1