an 23) Merchant dampany the property were hased proporty for a building site. The costs mocissl with Purchase price Real estate Legal fees Expenses of clearing the land Expenses to remove old building $185,000 15,000 700 2,000 4,000 What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building A) $200,000 to Land; $6,700 to Building B) $200,700 to Land;$6,000 to Building C) $206,700 to Land; 50 to Building D) $187,700 to Land; $19,000 to Building E) $185,000 to Land; $21,700 to Building 24) Contingent liabilities must be recorded if 24) A) The future event is reasonably possible but not estimable B) The future event is probable but not estimable. C) The future event is remote D)The future event is probable and the amount owedbe reasonably estimate E) The amount owed cannot be reasonably estimatiod 25) 25) A contingent liability is A) An obligation arising from a future event B) Always of a specific amount C) A potential obligation that depends on a future event arising from a past transaction or event D) An obligation not requiring future payment E) An obligation arising from the parchase of goods or services on credit 26).On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a26) day, 8%, $7,500 note. What is the journal entry needed to record the note by Jarrett Company on the maturity date? ment ofthe A) Debit Notes Payable $7,500; debit Interest Expense $150, credit Cash $7,650 B) Debit Cash $7,650, credit Interest Revenue $150, credit