d. the cost of 3. Shaffer Company acquires land for $77,000 cash. Additional cos
ID: 2584262 • Letter: D
Question
d. the cost of 3. Shaffer Company acquires land for $77,000 cash. Additional costs are as follows. 0c Removal of shed Filling and grading Salvage value of lumber of shed Broker commission Paving of parking lot Closing costs $ 300 1,500 120 1,130 10,000 Shaffer will record the acquisition cost of the land as a. $77,000 b. $78,690. c. $80,610 d. $80,370 4. Arnold Company purchases a new delivery truck for $45,000. The sales taxes are $2,500. The logo of the company is painted on the side of the truck for $1,200. The truck's annual is $120. The truck undergoes safety testing for $220. What does Amold record as the cost of the new truck? a. $49,040 b. $48,920 c. $47,500. d. $46,920 5. Rodgers Company purchased equipment and these costs were incurred: Cash price Sales taxes $55,000 3,600 640 Installation and testing Total costs $60,100 Rodgers will record the acquisition cost of the equipment as a. $55,000 b. $58,600 c. $59,240. d. $60,100.Explanation / Answer
3) option (C) $80610
77000 + 300 + 1500 + 120 + 1130 + 560 = 80610
4) option (B) $48920
45000 + 2500 + 1200 +220 = 48920
5) option (d) $60,100
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