1. Grab Manufacturing Co. purchased a 10-ton draw press at a cost of $189,000 with terms of 4/15, n/45. Payment was made within the discount period. Shipping costs were $4,500, which included $200 for insurance in transit. Installation costs totaled $11,200, which included $3,500 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the 10-ton draw press is:

a) $197,140

b) $181,440

c) $193,640

d) $198,640

10.

On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2017. Expenditures on the project were as follows:

January 1, 2016	$319,000
September 1, 2016	$468,000
December 31, 2016	$468,000
March 31, 2017	$468,000
September 30, 2017	$319,000

Dreamworld had $5,600,000 in 12% bonds outstanding through both years.

The average accumulated expenditures for 2017 by the end of the construction period was:

a) $1,019,250

b) $1,312,000

c) $2,042,000

d) $1,624,000

11.

On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2017. Expenditures on the project were as follows:

January 1, 2016	$308,000
September 1, 2016	$456,000
December 31, 2016	$456,000
March 31, 2017	$456,000
September 30, 2017	$308,000

Dreamworld had $5,200,000 in 12% bonds outstanding through both years.

What was the final cost of Dreamworld's warehouse?

a) $2,192,224

b) $2,181,328

c) $1,984,000

d) $1,275,200

16.

On March 31, 2016, M. Belotti purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed for highway construction. The cost of the quarry rights was $272,000, with estimated salable rock of 34,000 tons. During 2016, Belotti loaded and sold 5,100 tons of rock and estimated that 28,900 tons remained at December 31, 2016. At January 1, 2017, Belotti estimated that 15,300 tons still remained. During 2017, Belotti loaded and sold 10,200 tons. Belotti would record depletion in 2017 of (Round cost per ton to two decimal places.):

a) $156,322

b) $157,402

c) $167,242

d) $154,122

20. Broadway Ltd. purchased equipment on January 1, 2014, for $840,000, estimating a 7-year useful life and no residual value. In 2014 and 2015, Broadway depreciated the asset using the straight-line method. In 2016, Broadway changed to sum-of-years'-digits depreciation for this equipment. What depreciation would Broadway record for the year 2016 on this equipment? (Do not round your depreciation rate.)

a) $100,000

b) $120,000

c) $240,000

d) $200,000