6. The items below represent expenditures related to the construction of a new office building Cost of land Cost of removing old structures Grading the site Cost of obtaining building permits Cost of paving parking lot s 210,000 Legal fees related to land purchase 2.000 4S00 2,000 Payment of delinquent property tales 5,000 Payment to building contractor 4,500 Interest cost incurred during construction Cost of fencing 9,000 5,000 20,000 The proper balances for the Land account and the Building account should be: Land $218,000 $214,500 $223,500 $223,500 Building 900,000 $901,000 $943,500 $944,000 7. Which of the following statements is false? Accelerated depreciation methods recor asset than either the straight-line method or the unit-of-production method. The cost of an asset, its residual value, and its estimated useful life are all used in computing depreciation. The unit-of-production method is most appropriate for an asset that wears out due to physical use. Land is never depreciated. a. d more depreciation expense over the life of an b. c. d. Table ACC 203-1 On January 1, 2018, Knight Security Service purchased an alarm monitoring system for $110,000. The system is expected to be used for 5 years, after which it can be sold for $20,000. 8. Refer to Table ACC 203-1. What is the book value of the equipment on December 31, 2019, if Knight uses the straight-line method of depreciation? a. $72,000 b. $92,000 C. $74,000 d. $54,000