1.

Sutton Company acquires land for $90,000 cash. Additional costs are as follows:

Removal of shed	$ 700
Filling and grading	1,500
Salvage value of lumber of shed	200
Broker commission	1,000
Paving of parking lot	4,000
Closing costs	500

Sutton will record the acquisition cost of the land as:

$90,000

$93,500

$93,700

$97,500

2.

Queen Co. paid $50,000 for land on which they plan to build a new restaurant.. Closing costs were $3,000. They paid $8,000 to remove an old barn and grade the property. They sold salvaged materials from the old barn for $1,000. A paved driveway and parking lot were installed for $10,000. The cost added to the Land account is:

$50,000

$60,000

$61,000

$70,000

3.

On July 15, 2010, GreenForest Co. bought timber rights for $700,000. An additional $100,000 was spent to develop the site. The timber stand is expected to produce an estimated 1,600,000 board feet of lumber and have no salvage value. During 2010 250,000 board feet were cut and 200,000 were sold. The depletion expense recorded for 2010 would be:

$70,000

$80,000

$87,500

$100,000

4.

On July 4, 2011, Montana Mining Company purchased the mineral rights to a granite deposit for $800,000. It is estimated that the recoverable granite will be 400,000 tons. During 2011, 100,000 tons of granite were extracted and 40,000 tons were sold. The amount of the Cost of Goods Sold (Depletion Expense) recognized for 2011 was:

$80,000

$100,000

$120,000

$200,000