4.Somerset Company acquired a piece of equipment with a list price of $200,000 for $154,000. Freight to Somerset's location was $9,000. Installation and testing costs were $10,500. An old piece of equipment was scrapped as a result of this new purchase. The old piece of equipment had a depreciated value (net book value) of $8,000. The new piece of equipment is expected to have a 10-year life and a salvage value of $15,000. What is the total value assigned to the new piece of equipment?

5. February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of $97,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2018. Costs incurred during this period were:

Item	Amount
Demolition dilapidated building	$3,000
Architect Fees	$11,250
Legal Fees - for title search	$1,000
Interest During Active Construction Period	$5,025
Real estate transfer tax	$1,125
Construction Costs	$605,000

Using this information, how much should be recorded as the cost of the land?

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