What is the impact of the improper accounting treatment of the purchase on the company's net income for the life of the building?

Prepare journal entries to record these transactions. (a) Echo Company retires its delivery equipment, which cost $41000. Accumulated depreciation is also $41000 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), expcept that accumulated depreciation for the equipment is $37200 instead of $41000.

Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $2,000   b. Cost of real estate acquired as a plant site: Land 280,000                                                                      Building (to be demolished) 55,000   c. Delinquent real estate taxes on property, assumed by purchaser 15,000   d. Cost of razing and removing building acquired in (b) 5,000   e. Proceeds from sale of salvage materials from old building 3,000 *   f. Special assessment paid to city for extension of water main to the property 29,000   g. Architect’s and engineer’s fees for plans and supervision 60,000   h. Premium on one-year insurance policy during construction 7,000   i. Cost of filling and grading land 13,000   j. Money borrowed to pay building…