1. The Miller Company paid $20,000 to acquire a 100 ton press. Freight charges to deliver the equipment amounted to $3,000 and were paid by Miller. Installation costs amounted to $1,140, and machine testing charges amounted to $500. Calculate the amount that should be capitalized to the Equipment account

2. The Pack Company purchased an office building for $13,500,000. The building had an estimated useful life of 40 years and an expected salvage value of $1,500,000.

Calculate the depreciation expense for the second year using the straight-line method.

3. The Likert Company is a coal company based in West Virginia. The company recently purchased a new coal truck for $59,000. The truck had an expected useful life of 200,000 miles and an expected salvage value of $5,000.

Calculate the depreciation expense using the units-of-production method assuming the truck travelled 40,000 miles on company business during the year.

4.The Miller Company sold a building for $480,000 that had a book value of $540,000. The building had originally cost the company $14,400,000 and had accumulated depreciation to date of $13,860,000. Prepare a journal entry to record the sale of the building.