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During 20X6, Tao Book Store paid $488,000 for land and built a store in Lisbon....

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During 20X6, Tao Book Store paid $488,000 for land and built a store in Lisbon. Prior to construction, the city of Lisbon charged Tao $1,800 for a building permit, which Tao paid. Tao also paid $15,800 for architect's fees. The construction cost of $710,000 was financed by a long-term note payable, with interest cost of $30,180 paid at completion of the project. The building was completed on September 30, 20X6. Tao depreciates the building by the straight-line method over 35 years, with estimated residual value of $341,000. Requirements: a. Journalize transactions for (8marks) 1. Purchase of the land. 2. All the costs chargeable to the building in a single entry. 3. Depreciation on the building. a. Report Tao Book Store's PPE on the company's balance sheet at December31, 20X6. (5marks) b. What will Tao's income statement for the year ended December 31, 20X6, report for this situation? (2marks)

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