Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $40,000 and giving a short-term note for $286,000. Legal fees paid were $1,580, delinquent taxes assumed were $11,500, and fees paid to remove an old building from the land were $22,400. Materials salvaged from the demolition of the building were sold for $4,900. A contractor was paid $991,000 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. Straight-Line Depreciation Rates Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage: (a) 10 years, (b) 8 years, (c) 25 years, (d) 40 years, (e) 5 years, (f) 4 years, (g) 20 years. If required, round your answers to one decimal place. Years Percentage a. 10 years % b. 8 years % c. 25 years % d. 40 years % e. 5 years % 4 years % g. 20 years % Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $3,800,000 of 4-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $3,927,923. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 2016. For a compound transaction, if an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment on October 1, 2016, and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment. (Round to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank. c. Why was the company able to issue the bonds for $3,927,923 rather than for the face amount of $3,800,000? The market rate of interest is the contract rate of interest