1) 1) Which of the following should be included in the cost of land? A) cost to build sidewalks on the land B) cost to clear the land of old buildings C) cost of installing signage D) cost of installing fences 2) A company's accountant capitalized a payment that should have been recorded as a revenue expenditure. How will this error affect the company's financial statements? A) Net income will be understated. B) Expenses will be overstated. C) Assets will be overstated. D) Liabilities will be overstated. 3) On June 30, 2018, Clooney Printers purchased a printer for $59,000. It expects the printer to last for four years and have a residual value of $6000. Compute the depreciation expense on the printer for the year ended December 31, 2018, using the straight-line method. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) A) $13,250 B) $6625 C) $14,750 D) $7729 4) Motor Sales sold its old office furniture for $9000. The original cost was $17,000, and at the time of sale, accumulated depreciation was $14,000. What is the effect of this transaction? A) gain of $9000 B) gain of $6000 C) loss of $6000 D) loss of $9000