1.Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,425,000. Harding paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $370,000; Building, $1,100,000 and Equipment, $730,000. (Round percentages to two decimal places: ie .054 = 5%). What journal entry would be used to record the purchase of the above assets?

Group of answer choices

a

Land	242,250
Building	712,500
Equipment	470,250
Cash		350,000
Notes payable		1,075,000

b

Land	370,000
Building	1,100,000
Equipment	730,000
Cash		2,200,000

c

Land	370,000
Building	1,100,000
Equipment	730,000
Cash		1,075,000
Notes payable		350,000
Gain on purchase of long-term assets		775,000

d

Land	370,000
Building	1,100,000
Equipment	730,000
Cash		350,000
Notes payable		1,850,000

2.

Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,330,000. Harding paid $315,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $333,000; Building, $990,000 and Equipment, $657,000. (Round percentages to two decimal places: ie .054 = 5%). Assume that Harding uses the units-of-production method when depreciating its equipment. Harding estimates that the purchased equipment will produce 1,040,000 units over its 5-year useful life and has a salvage value of $17,000. Harding produced 269,000 units with the equipment by the end of the first year of purchase. Which amount below is closest to the amount Harding will record for depreciation expense for the equipment in the first year?

Group of answer choices

$165,538.462

$109,126

$88,460

$169,936