1. The schedule is prepared as follows:
2. The assets capitalized into different classes carry different rates and methods of depreciation.
Items capitalized under land will not be depreciated and hence it is capital expenditure not effecting the expenditure.
<u>Explanation:</u>
1. Schedule of expenses
Expenses Land Land Building equipment
improvements
Attorney’s fee, land acq 34900
Cost of land 589000
Architect’s fee, building design 102000
Building 1020000
Parking lot and sidewalk 135600
Electrical wiring, building 164000
Landscaping 55000
Cost of surveying land 9,200
Training equipment, tables, and chairs 136,400
Installation of training equipment 68,000
Cost of grading the land 14,000
Cost of changes in building to soundproof rooms 59,200
Employee expenses alloted 12800 6400 38400 6400
TOTAL 636700 220200 1383600 210800
2. Depreciation on land improvements start when the project becomes substantially completed.
Depreciation on building starts when the building construction is substantially completed.
Depreciation on Equipments starts when the equipments begin to be put to use.
