1. A company purchased office equipment for $24,500 and paid $1,470 in sales tax, $550 for installation, $3,200 for a needed adjustment to the equipment, and $2,600 for supplies that will be used for periodic routine maintenance. How should the company record this transaction?

a Debit Equipment for $29,720, debit Supplies for $2,600, and credit Cash for $32,320

b Debit Equipment for $25,970, debit Repairs and Maintenance Expense $3,750, debit Supplies for $2,600, and credit Cash for $32,320

c Debit Equipment $24,500, debit Repairs and Maintenance Expense for $5,220, debit Supplies for $2,600, and credit Cash for $32,320

d Debit Equipment and credit Cash for $32,320

2.

A company buys equipment for $54,000, expects to use it for Five years, and then sell it for $6,600. Using the straight-line method, the company should report annual depreciation for the equipment of:

a $21,660.

b $10,800.

c $9,480.

d $18,960.

3. A company purchased property for $115,000. The property included a building, equipment and land. The building was appraised at $88,000, the land at $58,000, and the equipment at $31,000 for a total appraised value of $177,000. What is the amount of cost to be allocated to the building in the accounting records? (Round your intermediate calculations to 3 decimal places.)

a $88,000

b $0

c $115,000

d $57,155