on February 1, 2020, Bonita Industries purchased a parcel of land as a factory site for $328,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020, Costs incurred during this period are listed below: $19,800 Demolition of old building 11.000 Salvaged materials from demolition were sold for Architect's fees 35 300 4,900 Legal fees for title investigation and purchase contract Construction costs 1,384,000 Bonita should record the cost of the land and new building respectively as a. $336,800 and $1.424.200. b. $341,700 and $1,419,300. c. $352.700 and $1,408,300 d. $336,800 and $1.419,300. 6. Carson Company purchased a depreciable asset for $560,000. The estimated salvage value is $28,000, and the estimated useful life is 10,000 hours. Carson used the asset for 1.000 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on this asset in the current year? a. 28.000 b. 53,200 c. 56,000 d. 79,800 7. Lockard Company purchased machinery on January 1, 2020, for $70,000. The machinery is estimated to have a salvage value of $7,000 after a useful life of 6 years. What is the 2020 depreciation expense using the sum-of-the-years-digits method? a. 10.500 b. 14.000 c. 18,000 d. 20,000