16.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. 17 Amold 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 truck's 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. 18.Equipment was purchased for $150,000. Freight charges amounted to $7,000 and there was a cost of $20,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $30,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be a. $35,400 b. $29,400. c. $24,600. d. $24,000. 19.In 2017, Blanchard Corporation has plant equipment that originally cost $120,000 and has accumulated depreciation of $48,000. A new processing technique has rendered the equipment obsolete, so it is retired. Which of the following entries should Blanchard use to record the retirement of the equipment? a. Loss on Disposal of Plant Assets 72,000 Equipment 72,000 b. Accumulated Depreciation -Equipment 48,000 Loss on Disposal of Plant Assets Loss on Disposal of Plant Assets Plant Equipment Equipment Accumulated Depreciation- Equipment Accumulated Depreciation- Equipment 72,000 72,000 120,000 120,000 72,000 48,000 c. d. Loss on Disposal of Plant Assets 72,000 20.Vickers Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $36,000 that will produce an estimated 110,000 units over its useful life. Estimated salvage value at the end of its useful life is $3,000. What is the depreciation cost per unit? a. $3.00. b. $3.27 C. $0.30. d. $0.33 21.Which of the following is not a basic principle of cash management