A company purchased land for exist70,000 each. Real estate brokers commission was exist5,000 and exist7,000 was spent for demolishing an old building on the construction of a new building could start. Under the cost principle, the cost of land would be recorded at exist77,000. exist70,000. exist75,000. exist82,000. The four subdivisions for plant assets are land, land improvements, buildings, and equipment. intangibles, land, buildings, and equipment furnishings and fixtures, land, buildings, and equipment. property, plant, equipment, and land Arnold Company purchases a new delivery truck for exist35,000. The sales taxes are exist2,000. The logo of the company is painted on the side of the truck for exist1, 200. The truck's annual license is exist120. The truck undergoes safety testing for exist220. What does Arnold record as the cost of the new truck? exist38, 540. exist38, 420. exist37,000. exist36, 420. The book value of an asset is equal to the asset's market value less its historical cost. blue book value relied on by secondary markets. replacement cost of the asset. asset's cost less accumulated depreciation. A company purchased factory equipment on April 1, 2010, for exist48,000. It is that the equipment will have a exist6,000, salvage value at the end of its 10-year Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2010, is exist4, 800. exist4, 200. exist3, 150. exist3, 600