AC2799 Wk4 Analysis 1 - 1 Depreciable Base Land includes...

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Depreciable Base 1 Land price $80,000 Previous delinquent taxes paid at closing by Drive and Fly $5,600 Title Insurance $3,200 Total depreciable base $88,800 2 Earthmoving $9,000 Landscaping $6,300 Fence around boundary $9,100 Construction supervisor salary 20% $16,000 Parking lot construction costs $29,000 Lights for parking lots $11,300 Total depreciable base $80,700 3 Building cost (labor and materials) $375,000 Building Permit for new building $500 Architects fee for new building $20,700 Signage at front of property $9,000 Construction loan interest cost $9,500 Construction supervisor salary 80% $64,000 Total Depreciable base $478,700 4 Furtniture Furniture costs $11,600 Freight costs for furniture FOB shipping point $2,200 Total Depreciable base $13,800 5 Truck $25,000 6 Bus $90,000 $11,250 7 Computer System $12,000 Methods of depreciation 1 Land will not be depreciated since it has an infinite life 2 Land improvement will be depreciated over 20 year life on a straight-line method. Costs incurred her 3 Building should be depreciated using a written down value method 4 Furniture should be depreciated on a straight line basis over 10 years since wear and tear is less. Sta
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