1. Pine Company acquires land for $97,000 cash. Additional costs are as follows:

Removal of shed	$ 400
Filling and grading	1,700
Salvage value of lumber of shed	100
Broker commission	1,600
Paving of parking lot	8,000
Closing costs	450

Pine will record the acquisition cost of the land as

a. $101,250

b. $101,330

c. $101,050

d. $97,000

2. Jobson Company issued a four-year interest-bearing note payable for $160,000 on January 1, 2007. Each January the company is required to pay $40,000 on the note. How will this note be reported on the December 31, 2008 balance sheet?

a. Long term debt, $160,000

b. Long term debt, $120,000

c. Long-term debt, $80,000; Long-term debt due within one year, $40,000.

d. Long-term debt, $120,000; Long-term debt due within one year, $40,000