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During 2020, Davis Inc. paid $196,000 for land and built a restaurant in Collingwood, Ontario. Prior to construction, the city of Collingwood charged Davis Inc. $1,800 for a building permit, which Davis Inc. paid. Davis also paid $15,800 for architect's fees. The construction cost of $710,000 was financed by a long-term note payable issued on January 1, 2020, with interest cost of $30,180 paid at December 31, 2020. The building was completed September 30, 2020. Davis Inc. will depreciate the building by the straight-line method over 25 years, with an estimated residual value of $75,000. Requirements ... Requirement 1. Journalize transactions for the following: (Record debits first, then credits. Explanations are not required. Hold all decimals in interim calculations. Round your final answer to the nearest whole dollar.) a. Purchase of the land. Date Accounts Debit Credit Requirements 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 2. Report this transaction in the Property, Plant, and Equipment on the company's balance sheet at December 31, 2020. 3. What will Davis Inc.'s income statement for the year ended December 31, 2020, report for the building? 4. Suppose in 2021, Davis Inc. changed the useful life of the building from 25 years to 30 years. How will this affect the income statement and balance sheet? Print Done

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