neryL 6. Drainage costs7. Cost to install a machine48. Fencesk 9. Unpaid (past) property taxes assumed10. Cost of tearing down a building when land and a building on it are purchasedQuestion - 2Seller Corporation purchased land adjacent to its plant to improve access for trucks makingdeliveries. Expenditures incurred in purchasing the land were as follows: purchase price, SR50,000; broker's fees, SR 6,000;) title (search and other fees, SR 5,000; demolition of an oldbuilding on the property, (SR 5,700 grading, SR 1,200/ſdigging foundation for the road, SR 3,000;laying and paving driveway, SR 25,00o; lighting SR 7,500; signs, SR 1,500. List the items andamounts that should be included in the Land account.Question - 3Lawdacaustion cost67.90oEastman Company purchased a delivery truck for SR 35,000 on January 1, 2008. The truck wasassigned an estimated useful life of 100,000 miles and has a residual value of SR 10,000. Thetruck was driven 18,000 miles in 2008 and 22,000 miles in 2009. Compute depreciation expenseusing the units-of-activity method for the years 2008 and 2009.Question - 4Tanner Company purchased equipment on January 1, 2007 for SR 70,000. It is estimated thatthe equipment will have a SR 5,000 salvage value at the end of its 5-year useful life. It is alsoestimated that the equipment will produce 100,000 units over its 5-year life.Instructions

Land Acquisition Cost - It is a cost of acquisition of land for the purpose of industrial. Unit of…

Question - 2 Seller Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, SR 50,000; broker's fees, SR 6.000;) title (search and other fees, SR 5,000; demolition of an old building on the property, (SR 5,700 grading, SR 1,200ſdigging foundation for the road, SR 3,000; laying and paving driveway, SR 25,000; lighting SR 7,500; signs, SR 1,500. List the items and amounts that should be included in the Land account. Lawd acqustion cost 67900 Question - 3 Eastman Company purchased a delivery truck for SR 35,000 on January 1, 2008. The truck was assigned an estimated useful life of 100,000 miles and has a residual value of SR 10,000. The truck was driven 18,000 miles in 2008 and 22,000 miles in 2009. Compute depreciation expense using the units-of-activity method for the years 2008 and 2009.

Question - 2 Seller Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, SR 50,000; broker's fees, SR 6.000;) title (search and other fees, SR 5,000; demolition of an old building on the property, (SR 5,700 grading, SR 1,200ſdigging foundation for the road, SR 3,000; laying and paving driveway, SR 25,000; lighting SR 7,500; signs, SR 1,500. List the items and amounts that should be included in the Land account. Lawd acqustion cost 67900 Question - 3 Eastman Company purchased a delivery truck for SR 35,000 on January 1, 2008. The truck was assigned an estimated useful life of 100,000 miles and has a residual value of SR 10,000. The truck was driven 18,000 miles in 2008 and 22,000 miles in 2009. Compute depreciation expense using the units-of-activity method for the years 2008 and 2009.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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