and making the purchase. Architect's fees were $46,800. Title insurance cost $3,600, and liability during construction cost $3,900. Excavation cost $15,660. The contractor was paid $4,200,000. made by the city for pavement was $9,600. Interest costs during construction were An assessment $255,000 6. The cost of the land that should be recorded by Wilson Co. is a. $1,496,380 b. $1,480,720 c. $1,484,820 d. $1,494.420. 7. The cost of the building that should be recorded by Wilson Co. is a. $4,205,700 b. $4,207,260 C. $4,219,800. d. $4,521,360. 8.The following information is available for October for Barton Company. $350,000 1,050,000 2,100,000 66.67% Beginning inventory Net purchases Net sales Percentage markup on cost A fire destroyed Barton's October 31 inventory, leaving undamaged inventory with a cost of S11,000. Using the gross profit method, the estimated ending inventory destroyed by fire is a. $119,000. b. $129,000. c. $560,000. d. $700,000. 9. Worley Truck Rental uses the group depreciation method for its fleet of trucks. When it retires one of its trucks and receives cash from a salvage company, the carrying value of property, plant, and equipment will be decreased by the a. original cost of the truck. b. original cost of the truck less the cash proceeds. c. cash proceeds received. d. cash proceeds received and original cost of the truck 0. At the end of the fiscal year, Apha Airlines has an outstanding purchase commitment for the purchase of 1 million gallons of jet fuel at a price of $4.60 per gallon for delivery during the coming summer. The company prices its inventory at the lower of cost or market. If the market price for jet fuel at the end of the year is $4.25, how would this situation be reflected in the annual financial statements? a. Record unrealized gains of $350,000 and disclose the existence of the purchase commitment. b. No impact c. Record unrealized losses of $350,000 and disclose the existence of the purchase commitment d. Only disclose the existence of the purchase commitment