5) A company incurred the following costs associated with the purchase of a piece of land that in will we to re-build an office building: What is the total capitalized cost of the land? A) $695,700 a) 5673,900 C) $692,800 D) $670,800 6) The balance shoet of Hidden Valley Farms reports total assets of $855,000 and $920,000 at the beginning and end of the year, reapectively. The return oe ausets for the year is 15%. What is Hidden Valley's net income for the year? A) 5138.000 A) 55,916,657 C) $6,133,333 D) $133,125 7) Which of the following is not a characteristic of a liability? A) It results from past transactions or events. B) Ir represents a probulle, future sacrifice of economic benefits. C) It must be pryable in cash. D) It arises from present obligations to other entities. 8) Which of the following is a contingency that should be recorded? A) The company deducts life insurance premiums from employces' parychecks. B) It is probable that the company will receive $100,000 in settlement of a lawsuit. c) The company is being sued and a loss is reasonably possible and reasonably estimable. D) The company offers a two-ycar warnanty and the expenses can be relasonably cstimated