Brief Exercise 9.1- These expenditures were incurred by Dobbin Company in purchasing land: cash price $60,000, assumed accrued taxes $5,000, attorney's fees $2,100, real estate broker's commission $3,300, and clearing and grading $3,500. What is the cost of the land? Brief Exercise 9.2- Thom Company incurs these expenditures in purchasing a truck: cash price $24,000, accident insurance (during use) $2,000, sales taxes $1,080, motor vehicle license $300, and painting and lettering $1,700. What is the cost of the truck? Question 5. Melanie is studying for the next accounting examination. She asks your help on two questions: (a) What is salvage value? and (b) How is salvage value used in determining depreciable cost under the straight-line method? Answer Melanie's questions. Question 6- Contrast the straight-line method and the units-of-activity method as to (a) useful life, and (b) the pattern of periodic depreciation over useful life. Question 9- Distinguish between ordinary repairs and capital expenditures during an asset's useful life. Question 11- Marsh Corporation owns a machine that is fully depreciated but is still being used. How should Marsh account for this asset and report it in the financial statements? Question 12- What are natural resources, and what are their distinguishing characteristics? Question 14- What are the similarities and differences between the terms depreciation, depletion, and amortization? Question 18- Under what conditions is goodwill recorded? What is the proper accounting treatment for amortizing goodwill? Question 19-Often, research and development costs provide companies with lasting benefits. (For example, these costs can lead to the development of a patent that will increase the company's income for many years.) However, generally accepted accounting principles require that such costs be recorded as an expense when incurred. Why