1. Sandhill Co. purchases land for $130000 cash. Sandhill assumes $5200 in property taxes due on the land. The title and attorney fees totaled $1700. Sandhill has the land graded for $3800. They paid $24000 for paving of a parking lot. What amount does Sandhill record as the cost for the land?

$164700.

$130000.

$140700.

$135500.

2.

Equipment with a cost of $883000 has an estimated salvage value of $55000 and an estimated life of 4 years or 18400 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used for 4600 hours?

$207000.

$225750.

$234500.

$220750.

3.

Novak Corp. purchased a delivery van with a $67000 list price. The company was given a $5600 cash discount by the dealer and paid $2900 sales tax. Annual insurance on the van is $1500. As a result of the purchase, by how much will Novak Corp. increase its van account?

$67000.

$65500.

$61400.

$64300.

4.

On January 1, 2020, Blossom Company, a calendar-year company, issued $1920000 of notes payable, of which $480000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2020, is:

Long-term debt, $1920000.

Current liabilities, $480000; Long-term Debt, $960000.

Current liabilities, $480000; Long-term Debt, $1440000.

Current liabilities, $1920000.

5.

Bonds with a face value of $456000 and a quoted price of 98.5 have a selling price of

$447108.

$448020.

$446903.

$449160.

6.

Five thousand bonds with a face value of $1000 each, are sold at 102. The entry to record the issuance is

Cash	5100000
Premium on Bonds Payable		100000
Bonds Payable		5000000

Cash	5100000
Bonds Payable		5100000

Cash	5100000
Discount on Bonds Payable		100000
Bonds Payable		5000000

Cash	5000000
Premium on Bonds Payable	100000
Bonds Payable		5100000