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Question - Brady Furniture purchased land, paying $90,000 cash and signing a $350,000 note payable, In addition, Brady paid delinquent property tax of $4,000, title insurance costing $4,500, and $3,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $450,000. It also paid $50,000 for a fence around the property, $15,000 for a sign near the entrance, and $9,000 for special lighting of the grounds.
Required -
1. Determine the cost of the land, land improvements, and building.
2. Which of these assets will Brady depreciate?
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