1.The following expenditures were incurred by McCoy Company in purchasing land: cash price $79,000, accrued taxes $2,800, attorneys' fees $3,900, real estate broker's commission $1,100, and clearing and grading $4,000. What is the cost of the land?

Cost of the land$

2.Rich Castillo Company incurs the following expenditures in purchasing a truck: cash price $53,000, accident insurance $3,800, sales taxes $3,400, motor vehicle license $100, and painting and lettering $400. What is the cost of the truck?

Cost of the truck$

3.Corales Company acquires a delivery truck at a cost of $48,000. The truck is expected to have a salvage value of $11,000at the end of its10-year useful life.

Compute annual depreciation expense for the first and second years using the straight-line method.

Year 1

Year 2

Annual depreciation expense

$

$

4.On January 1, 2017, Emporia Country Club purchased a new riding mower for $27,000. The mower is expected to have an8-year life with a $3,000salvage value.

What journal entry would Emporia make at December 31, 2017, if it uses straight-line depreciation?(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

5.Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven157,000miles. Taxi no. 10 cost $37,000and is expected to have a salvage value of $730. Taxi no. 10 is driven31,800miles in year 1 and19,100miles in year 2.

(a1)

Calculate depreciation cost per mile using unit-of-activity method.(you have to Round answer to 2 decimal places, e.g. 0.50.)

Depreciation cost$

per mile