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I need help with these four multiple choice questions.Thanks! 1. A company purchased land for $540000 cash. Real estate brokers' commission was $20000 and $47000
I need help with these four multiple choice questions.Thanks!
1. A company purchased land for $540000 cash. Real estate brokers' commission was $20000 and $47000 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land would be recorded at $587000. $560000. $540000. $607000. 2. Cullumber Company purchases land for $150000 cash. Cullumber assumes $4800 in property taxes due on the land. The title and attorney fees totaled $3100. Cullumber has the land graded for $3400. They paid $22000 for paving of a parking lot. What amount does Cullumber record as the cost for the land? $161300. $183300. $150000. $156500. 3. Carla Vista Co. purchases a new delivery truck for $64000. The sales taxes are $4200. The logo of the company is painted on the side of the truck for $1600. The truck's annual license is $130. The truck undergoes safety testing for $280. What does Carla Vista record as the cost of the new truck? $68080. $70080. $68200. $70210. 4. The interest charged on a $252000 note payable, at the rate of 6%, on a 90-day note would be (Use 360 days for calculation.) $15120. $1260. $3780. $7560Step by Step Solution
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