- Item 1: Entity A purchased land adjacent to its plant to improve access for trucks making deliveries. The expenditure incurred in purchasing the land was as follows: Purchase price $75,000 Broker's fees 1,700 Title search and survey 5,000 Demolition of an old building on property 5,700 Grading 1,200 Digging foundation for the road 3,000 Laying and paving driveway 25.000 Lighting 7.500 I Signs 1,500 Files Font Paragraph Styles Editing Reuse Files Dictation tor Designer Item 2: Equipment with a cost of $340,000 has an estimated salvage value of $20,000 and an estimated life of 4 years. Compute the annual depreciation and then show what this asset looks like on the balance sheet at the end of the second year