1. A company purchased land for $70,000 eash. Real est $5,000 and $7,000 was spe
ID: 2601171 • Letter: 1
Question
1. A company purchased land for $70,000 eash. Real est $5,000 and $7,000 was spent for demolishing an old building sm construction of a new building could start. Under the cost land would be recorded at A) $77,000. B) $70,000. C) $75,000. D) $82,000. principle, the asset cost of $3,000 2. Engler Company purchases a new delivery truck for $48,000. The sales taxes are The logo of the company is painted on the side of the truck for $1,200. The truck icens is $120. The truck undergoes safety testing for $220. What does Engler record as the asset cost of the new truck? A) S52,540 B) $52,420 C) S51,000 D) $50,420 3. Presto Company purchased equipment and these costs were incurred $22,500 1,800 320 430 Cash price Sales taxes Insurance during transit Installation and testing Total costs Presto will record the acquisition cost of the equipment as A) $22,500. B) $24,300. C) $24,620. D) $25,050. Page 1Explanation / Answer
1. Option d is correct=$82,000
Explanation:
Cost of Land:
=Purchase price+commission+cost of demolishing the building
=$70,000+$5,000+$7,000
=$82,000
2. Option b is correct:
=$52,420
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