ID: A 9. Indicate whether each of the following assets is subject to depreciatio
ID: 2601072 • Letter: I
Question
ID: A 9. Indicate whether each of the following assets is subject to depreciation (D), depletion (DL), amortization (A), or none of these (X). -1. Copyrights 2. Patents 3. Oil well 4. Company vehicle 5. Land 6. Trademark 7. Mineral deposit 8. Office equipment 9.Office supplies 10. Grannis Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred by the company were as follows: purchase price, $40,000, broker's fees, $7,000; title search and other fees, $6,000; demolition of an old building on the property, $3,700; grading, $1,200, digging foundation for the road, $3,000; laying and paving driveway, $25,000; lighting, $7,500; signs, $1,500. List the items and the amounts that should be included in the Land account. List the items and the amounts that should be included in the Land Improvement account. Land: Land Improvement:Explanation / Answer
Purchase price $40,000
Broker’s fees 7,000
Title search and other fees 6,000
Demolition of old building 3,700
Grading 1,200
Land acquisition cost $57,900
Digging foundation for the road $3,000
Laying and paving driveway 25,000
Lighting 7,500
Signs 1,500
Land improvements cost $37,000
1 Copyrights A 6 Trademark A 2 Patents A 7 Mineral deposit DL 3 Oil well DL 8 Office equipment D 4 Company vehicle D 9 Office supplies X 5 Land X 10 Leasehold improvement D