A company purchased land for $90,000 cash. Real estate brokers' commissions was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land would be recorded at $107,000. $90,000. $90,000. $102,000. Which of the following assets does not decline in service potential over the course of the Useful life? Equipment Furnishings Land Fixtures Presto Company purchased equipment and these costs were incurred. Cash price Sales taxes Insurance during transit Installation and testing Total costs Presto will record the acquisition cost of the equipment as $65,000. $68, 600. $69, 240. $70, 100. Which depreciation method is most frequently used in businesses today? Straight-line Declining-balance Units-of-activity Double-declining-balance The calculation of depreciation using the declining balance method, ignores salvage value in determining the amount to which a constant rate is applied multiplied a constant percentage times the previous year's depreciation expense. yield an increasing depreciation expenses each period. Multiples a declining percentage times a constant book value. Which of the following method of computing depreciation is production based? Straight-line Declining-balance Units-of-activity None of these answer choice are correct