Potvin Self Storage purchased land , paying $ 175,000 cash as a down payment and signing a $ 185,000 note payable for the balance . Potvin also had to pay delinquent property tax of $ 5,500 , title insurance costing $ 3,000 , and $ 2,000 to level the land and remove an unwanted building . The company paid $ 55,000 to add soil for the foundation and then constructed an office building at a cost of $ 1100,000 . It also paid $ 47,000 for a fence around the property , $ 16,000 for the company sign near the property entrance , and $ 10,000 for lighting of the grounds . Requirement
1 . What is the capitalized cost of each of Potvin ' s land , land improvements , and building ? 2 . cost of land improvement 3 . Cost of building
E 7-19A Tasteful ' s Pizza bought a used Toyota delivery van on January 2 , 2014 , for $ 18,000 . The van was expected to remain in service for four years left parenthesis ( 41,750 miles ). At the end of its useful life , Tasteful ' s officials estimated that the van ' s residual value would be $ 1,300 . The van traveled 13,000 miles the first year , 11,250 miles the second year , 10,250 miles the third year , and 7,250 miles in the fourth year . Requirements 1 . Prepare a schedule of depreciation expense per year for the van under the three depreciation methods . 2 . Which method best tracks the wear and tear on the van ? 3 . Which method would Tasteful ' s prefer to use for income tax purposes ? Explain in detail why Tasteful ' s prefers this method .
Prepare a schedule of depreciation expense per year for the van under the three depreciation methods