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Question - Bevo T-shirt Company purchased land, paying $30,000 cash plus a $300,000 note payable. In addition, Bevo paid delinquent property tax of $2,000 and paid $14,000 to remove an unwanted building on the property. Bevo then constructed an office building at a cost of $900,000. Bevo also paid $15,000 for legal work on the land. $40,000 was spent on paving for a parking lot and $10,000 was paid for lighting. High-tech sewing machines costing $80,000 were then installed and setup at a cost of $5,000. Transportation cost on the machines was $700. $400 was spent on building permits.
Requirements -
1. What are the cost of the land, land improvements, building and equipment?
2. Which of these assets will Bevo depreciate?
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