1. Padre, Inc., purchased a used piece of heavy equipment for $25,000. Delivery of the equipment to Padres business site cost $750. Expenditures to recondition the equipment and prepare it for use totaled $2,230. The maintenance for the first year Padre owned the equipment was $1,200. Determine the cost that is the basis for calculating annual depreciation on the equipment. 2. Twin-Cities, Inc., purchased a building for $400,000. Straight-line depreciation was used for each of the first two years using the following assumptions: 25-year estimated useful life, with a residual value of $100,000. a. Calculate the annual depreciation for the first two years that Twin-Cities owned the building. b. Calculate the book value of the building at the end of the second year.