Question
1 ) Whyte Clinic purchases land for $420,000 cash. The clinic assumes $4,500 in property taxes due on the land. The title and attorney fees
1) Whyte Clinic purchases land for $420,000 cash. The clinic assumes $4,500 in property taxes due on the land. The title and attorney fees totaled $3,000. The clinic had the land graded for $6,600. What amount does Whyte Clinic record as the cost for the land?
a. $426,600.
b. $420,000.
c. $434,100.
d. $427,500.
2) Arnold Company purchases a new delivery truck for $45,000. The sales taxes are $2,500. The logo of the company is painted on the side of the truck for $1,200. The trucks annual license is $120. The truck undergoes safety testing for $220. What does Arnold record as the cost of the new truck?
a. $49,040.
b. $48,920.
c. $47,500.
d. $46,920.
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