During 2017, Liang Inc. paid $ 200000 for land and built a restaurant in Cobourg,...
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During 2017, Liang Inc. paid $ 200000 for land and built a restaurant in Cobourg, Ontario. Prior to construction, the city of Cobourg charged Liang Inc. $ 1100 for a building permit, which Liang Inc. paid. Liang also paid $ 15100 for architect's fees. The construction cost of $ 675000 was financed by a long-term note payable issued on January 1, 2017, with interest cost of $ 28080 paid at December 31, 2017. The building was completed September 30, 2017. Liang Inc. will depreciate the building by the straight-line method over 25 years, with an estimated residual value of $ 40 000
1. Journalize transactions for the following (explanations are not required): a. Purchase of the land b. All the costs chargeable to the building, in a single entry c. Depreciation on the building Report this transaction in Property, Plant, and Equipment on the company's balance sheet at December 31, 2017 What will Liang Inc.'s income statement for the year ended December 31, 2017, report for building? 2. 3
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