1. A company purchased new equipment for $61,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,050; sales tax paid $3,200; and installation cost, $2,600.

The cost recorded for the equipment was:

$65,250.

$67,850.

$62,050.

$61,000.

2. Alamos Co. exchanged equipment and $17,300 cash for similar equipment. The book value and the fair value of the old equipment were $81,000 and $91,300, respectively. Assuming that the exchange has commercial substance, Alamos would record a gain/(loss) of:

$(10,300).

$27,600.

$10,300.

$0.

3. A company purchased land, a building, and equipment for one price of $1,550,000. The estimated fair values of the land, building, and equipment are $193,750, $1,356,250, and $387,500, respectively.

At what amount would the company record the land?

$193,750

$155,000

$1,550,000

$165,000