7-3.Express Delivery Company acquired an adjacent lot to construct a new warehouse, paying $80,000 and giving a short-term note for $620,000. Legal fees paid were $1,900, delinquent taxes assumed were $9,000, and fees paid to remove an old building from the land were $6,000. Materials salvaged from the demolition of the building were sold for $1,175. A contractor was paid $800,000 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.

7-4.Hometown Delivery Co. incurred the following costs related to trucks and vans used in operating its delivery service:

1.Changed the oil and greased the joints of all the trucks and vans.

2.Changed the radiator fluid on a truck that had been in service for the past four years.

3.Installed a hydraulic lift to a van.

4.Installed security systems on four of the newer trucks.

5.Overhauled the engine on one of the trucks purchased three years ago.

6.Rebuilt the transmission on one of the vans that had been driven 40,000 miles. The van was no longer under warranty.

7.Removed a two-way radio from one of the trucks and installed a new radio with a greater range of communication.

8.Repaired a flat tire on one of the vans.

9.Replaced a truck's suspension system with a new suspension system that allows for the delivery of heavier loads.

10.Tinted the back and side windows of one of the vans to discourage theft of contents.

Classify each of the costs as a capital expenditure or a revenue expenditure.

7.8A refrigerator used by a meat processor has a cost of $86,750, an estimated residual value of $7,500, and an estimated useful life of 25 years. What is the amount of the annual depreciation computed by the straight-line method?

*****TEMPLATE ATTACH FOR QUESTION ANSWERS***** 7.3-7.8

Writing Assignment

Read the scenario below and answer questions 1?3 in a Microsoft Word document. For question 1, give your answer and show your work. For Questions 2 and 3 answer each question in a paragraph of at least 100 words. Use APA format and cite any sources.

Sanders Construction Co. specializes in building replicas of historic houses. Brett Sanders, president of Sanders Construction, is considering the purchase of various items of equipment on July 1, 2014 for $300,000. The equipment would have a useful life of 5 years and no residual value. Brett is considering depreciating the equipment by the straight-line method or the double declining balance method.

Answer the following questions:

1. Calculate the depreciation for the first year using the straight-line method and the Double declining balance method, show your work.
2. In a short paragraph, explain the straight-line depreciation method and the Double declining balance method.
3. In your opinion, which method would be better for the company to use, why? Explain your answer.

In this Assignment on calculating depreciation using different methods, you will engage in developing the following professional competency:

Make sure your document includes:

• Your Name
• Date
• Course Name and Section Number
• Unit Number
• Assignment Name
• Page Numbers

**** SHORT TO THE POINT ANSWERS NO CRAZY FANCY VOCAB, AND NOT OVERLY LONG AVERAGE 100 WORDS PER ANSWER**

Exercise 7-3 Calculate the cost of land: Show your work. Exercise 7-4 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Exercise 7-8 Show your work