Real estate purchased as plant site

Transcribed image text: Item 1: Entity A incurred the following plant asset expenditures in during the year. $270,000 6,000 1. Real estate purchased as plant site (land $190,000 and building $80,000) 2. Accrued real estate taxes (owed by seller) paid at time of purchase of real estate 3. Cost of demolition of building to make land suitable for construction of new building 4. Cost of filling and grading the land 5. Excavation costs for new building 6. Architect's fees on new building plans 7. Full payment to building contractor 8. Cost of parking lots, driveways, landscaping 32,000 6,700 21,900 44,000 629,500 36,000 9. Proceeds from salvage of demolished building 12,700 List the items and amounts that make up the Land account. Be sure to provide a total. Item 2: Equipment with a cost of $440,000 has an estimated salvage value of $40,000 and an estimated life of 8 years. Compute the annual depreciation and then show what this asset looks like on the balance sheet at the end of the second year (prepare a partial classified balance sheet). Item 3: Equipment that cost $73,000 and on which $60,000 of accumulated depreciation has been recorded was disposed of for $14,000 cash. Make the entry to record this transaction. Hint: Compute BV and then gain (loss). Item 4: Entity B bought equipment for $240,000 on January 1, 2021. It estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation was used. On January 1, 2022, Entity B decides that it will use the equipment for a total of 5 years. Compute the revised depreciation expense for 2022 and make the entry to record depreciation expense. Show work. Item 5: Go to the Discussions area on Learn and take the question you have been assigned. Identify it as Question No. and provide a brief tagline of the question (and copy the question in the posting). Further postings on that question should be within the question thread. You will also be required to respond to a posting other than your own. The postings represent an application of the material that comprises the learning objectives for the chapter. The grading criteria (up to 3 points) are contained in the syllabus. Please also post the question and answer here so we can easily see what you posted. If you don't place the question and your answer here, we will charge one point for finding it.