1) On November 1, 2021, Spring Lake Co. purchased a piece of land with plans to construct a new building. No plans for the building will begin until 2022. At December 31, 2021,

the amount of depreciation expense recorded on the land would be equal to

-The entire cost of the land would be expensed in 2021.

-No depreciation expense would be recorded on the land in 2021.

-the cost of the land, divided by its expected useful life, prorated for only 2 months out of 12 in 2021.

-the cost of the land, minus any salvage value, divided by its expected useful life.

2) on january 1, 2021, Friendly Corporation issued $600,000, 4%, 5-year bonds at 103. Interest is payable semiannually on July 1 and Jan 1. The entry to record the issuance of the

bonds would include a credit to

-Cash for $600,000.

-Bonds Payable for $618,000.

-premium on Bonds Payable for $18,000.

-cash for $618,000.