Ferguson Company purchased a depreciable asset for $100,000. The estimated residual value is $10,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset?

Select one:

a. $90,000

b. $100,000

c. $10,000

d. $9,000

On December 1, Miser Corporation exchanged 2,000 shares of its $25 par value ordinary shares held in treasury for a parcel of land to be held for a future plant site. The treasury shares were acquired by Miser at a cost of $40 per share, and on the exchange date the ordinary shares of Miser had a fair value of $50 per share. Miser received $6,000 for selling scrap when an existing building on the property was removed from the site. Based on these facts, the land should be capitalized at

Select one:

a. $94,000.

b. $80,000.

c. $100,000.

d. $74,000.