Exercise 9-1 b The following expenditures relating to property, plant, and equipment were made by Bachinski Ltd.: (b) Beside each transaction write the account title that the expenditure should be debited to. 1. Paid $1.2 million for a plant site. 2. Paid $8,000 of legal fees on the purchase of the plant site. 3. Paid $39,000 to demolish an old building on the plant site; residual materials were sold for $7,000. 4. Paid $55,000 for paving the parking lot on the plant site. Prepaid Insurance Land 5. Paid $57,600 in architect fees for the design of the new plant. Land Improvements 6. Promised to pay $150,000 in restoration costs for the land when the company is finished using the plant site. Buildings 7. Paid 580,000 for a new delivery truck. Vehicles 8. Pald $3,000 to have the company name and advertising slogan painted on the new truck. Vehicles Expense 9. Pald a $400 motor vehicle licence fee on the new truck. 10. Paid $2,800 for a one-year accident Insurance policy on the new truck, FULL SCREEN PRINTER VERSION NEX RCES Exercise 9-2a-d Hohnberger Enterprises purchased equipment on March 15, 2018, for $75,000. The company also paid the following amounts: $500 for freight charges: 5200 for insurance while the equipment was in transit; $1,800 for a one-year insurance policy: $2,100 to train employees to use the new equipments and $2,800 for testing and installation. The equipment was ready for use on April 1, but the company did not start using it until May 1. Hohnberger has estimated the equipment will have a 10-year useful life with no residual value. It expects to consume the equipment's future economic benefits evenly over the useful life. The company has a December 31 year end. Calculate the cost of the equipment. Study Cost of the equipment $ When should the company begin depreciating the equipment: March 15, April 1, or May 1? ssignment FULL SCREEN PRINTER VERSION 4 BACK NEXT ECES Hohnberger has estimated the equipment will have a 10-year useful life with no residual value. It expects to consume the equipment's future economic benefits evenly over the useful life. The company has a December 31 year end. Calculate the cost of the equipment. Cost of the equipment $ Study When should the company begin depreciating the equipment: March 15, April 1, or May 1? Which depreciation method should the company use? Using the method chosen above, calculate the depreciation on the equipment for 2018. (Round answer to o decimal places, e.g. 5,275.) nonrecintinn Inr 2018