Ex. 7 On March 1,2017, Landon Company acquired real estate on which it planned to construct a small office building. The company paid $90,000 in cash. An old warehouse on the property was razed at a cost of $7,600; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,100 attorney's fee for work concerning the land purchase, $4,000 real estate broker's fee, $7,800 architect's fee, and $14,000 to put in driveways and a parking lot. Instructions Determine the amount to be reported as the cost of the land. Ex. 8 South Airlines purchased a 747 aircraft on January 1, 2015, at a cost of $35,000,000. The estimated useful life of the aircraft is 20 years, with an estimated salvage value of $5,000,000.On January 1, 2018 the airline revises the total estimated useful life to 15 years with a revised salvage value of $3,500,000. Instructions (a) Compute the depreciation and book value at December 31, 2017 using the straight-line method. Ex. 9 Equipment was acquired on January 1, 2014, at a cost of $90,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2017, using the straight-line method. On January 1, 2018, the estimated salvage value was revised to $6,000 and the useful life was revised to a total of 8 years Instructions Determine the depreciation expense for 2018. Ex. 10 (a) Brown Company purchased equipment in 2010 for $150,000 and estimated a $10,000 salvage value at the end of the equipments 10-year useful life. At December 31, 2016, there was $98,000 in the Accumulated Depreciation account for this equipment using the straight- line method of depreciation. On March 31, 2017, the equipment was sold for $40,000. Prepare the appropriate journal entries to remove the equipment from the books of Brown Company on March 31, 2017. Finney Company sold a machine for $15,000. The machine originally cost $35,000 in 2014 and $8,000 was spent on a major overhaul in 2017 (charged to the Equipment account). Accumulated Depreciation on the machine to the date of disposal was $28,000. (b) Prepare the appropriate journal entry to record the disposition of the machine. Stanley Company sold office equipment that had a book value of $12,000 for $16,000. The office equipment originally cost $40,000 and it is estimated that it would cost $50,000 to replace the office equipment. (c) Prepare the appropriate journal entry to record the disposition of the office equipment