Chapter 10 Problem Set A Problem 10-1 On January 1, 2019 Crampton Company acquired land on which to construct a new distribution warehouse. During 2019, the company made expenditures as follows: 1. Contract price of the land $600,000 2. Closing costs $23,000 3. Hoerr Excavating for clearing and grading $65,000 4. Sparks Concrete Construction for sidewalk and parking lot $158,500 5. Touchstone Lighting for parking lot lighting $21,500 6. J Hacker and Associates, Architects $71,000 7. Town of Normal for building permits $9,500 8. Lewis General Contractors $4,100,000 9. Crampton also purchased $1,450,000 of warehousing equipment and conveyors. The entire facility was placed in service before December 31, 2019. Prepare Crampton Company's PPE section of their balance sheet dated December 31, 2019 before the adjusting entries for depreciation Problem 10-2 Seipp Company purchased a vehicle on January 1, 2018. During 2018, 2020 they made various expenditures related to that vehicle. Determine which expenditures are revenue expenditures and which are capital expenditures. Expenditure 1 Painting company advertising on vehicle 2 Oil change and tune up 3 Repair of punctured tire 4 Annual insurance premium Annual registration sticker 6 Overhaul of engine Addition of trailer-towing package Gasoline Application of rust prevention package 5 7 00 9 Problem 10-3 On January 1, 2017 Baker Company purchased a new delivery van for $84,000 that had an expected salvage value of $12,000. Its useful life was estimated to be 4 years or 160,000 miles. Its actual mileage was . . . 2017 37,800 miles 2018 43,600 miles 2019 39,100 miles 2020 39,500 miles For Parts 1, 2, and 3, use the specified method to calculate the depreciation expense for each year from 2017 through 2020. In each part, also calculate the accumulated depreciation and book value for each year. Show and label all calculations. Part 1: Straight-Line Method Part 2: Double-Declining Balance Method Part 3: Units-of-Production Method