Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $36,000 and giving a short-term note for $287,000. Legal fees paid were $1,940, delinquent taxes assumed were $14,700, and fees paid to remove an old building from the land were $22,100. Materials salvaged from the demolition of the building were sold for $4,800. A contractor was paid $981,900 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. Partial-Year Depreciation Equipment acquired at a cost of $81,000 has an estimated residual value of $5,000 and an estimated useful life of 10 years. It was placed into service on April 1 of the current fiscal year, which ends on December 31. If necessary, round your answers to the nearest cent a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Depreciation Year 1 Year 2 b. Determine the depreciation for the current fiscal year and the following fiscal year by the double-declining-balance method. Depreciation Year 1 Year 2 Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $322,900, has an estimated useful life of 9 years and an estimated residual value of $42,100 a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year Depreciation Expense Year 1 Year 2 Year 3 b. What was the book value of the equipment on January 1 of Year 4? c. Assuming that the equipment was sold on January 3 of Year 4 for $217,800, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank