Maybell Inc., has the following items for the month of July: Inventory turnover is: 3.96. 4.26. 4.60. 7.02. Beginning inventory for the year ended December 31, 2011, is understated. How will this error affect net income for 2011 and 2012? 2011 overstated; 2012 understated 2011 understated; 2012 overstated 2011 overstated; 2012 no effect 2011 understated; 2012 no effect Land is purchased for $543, 710. Back taxes paid by the purchaser were $8, 500; total costs to demolish an existing building and clear the land were $215,000, and costs of paving the parking lot were $ 106,000. What is the cost of the land? $543, 710 $649, 710 $767, 210 $873, 210 On June 1, Puff's Trucking Company paid $3,000 to overhaul the engine on a delivery truck to allow it to be used for two additional years. It also paid $75 for an oil change on the truck. Which of the following statements is true? The $3,000 is a capital expenditure and the $75 is an expense. The $3,000 is an expense and the $75 is a capital expenditure. Both items are capital expenditures. Both items are expenses. Coal Factory, Inc., acquired a coal mine for $8, 500,000 in 2011. Geologists estimate the deposit contains 2, 125,000 tons of coal. Once the coal is mined, the asset will have no residual value. During 2011 and 2012, Coal Factory, Inc. mined 316, 410 tons and 406, 512 tons of coal, respectively. The balance in the intangible asset account for the coal on December 31, 2012, will be: $2, 891, 688. $4, 885, 390. $5, 608, 312. $8, 500,000