No Spacing Heading Title Subtit ACCT 2110 CE #4: Ch.9 Item 1: Entity A purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: Purchase price $55,000 Broker's fees 1,700 Title search and survey 5,000 Demolition of an old building on the property 5,700 Grading 1,200 Digging foundation for the road 3,000 Laying and paving driveway 25,000 Lightin 7,500 Signs 1,500 Proceeds from the salvage of the demolished building were $1,000. List the items and amounts that make up the Land account. Be sure to provide a total. Item 2: Equipment with a cost of $370,000 has an estimated salvage value of $10,000 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. Item 3: Equipment that cost $72,000 and on which $60,000 of accumulated depreciation has been recorded was disposed of for $9,000 cash. Make the entry to record this transaction. Hint: Compute Book Value (BV) and then gain (loss). 1 Item 4: Entity B bought equipment for $240,000 on January 1, 2021. It estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation was used. On January 1, 2022, Entity B decides that it will use the equipment for a total of 5 years. Compute the revised depreciation expense for 2022 and make the entry to record depreciation expense. Show work. States)