28) A company acquired an office building on three acres of land for a lump-sum price of $2,400,000. The building was completely equipped. According to independent appraisals, the fair values were $1,300,000, $780,000, and $520,000 for the building, land, and equipment, respectively. At what amount would the company record the building?

A) $720,000.

B) $1,300,000.

C) $1,200,000.

D) None of these answer choices are correct.

29) A company purchased a computer system at a cost of $40,000. The estimated useful life is 10 years, and the estimated residual value is $5,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year?

A) $8,000.

B) $7,000.

C) $5,600.

D) $6,400.