On January 6, Year 1, the Mount Jackson Corporation purchased a tract of land for a factory site for $815,000. An existing building on the site was demolished and the construction of the new factory building was completed on October 11, Year 1. Additional cost data are shown below: Construction cost of new building Realtor's and attorney's fees Architect's fees relating to construction of new building Cost to demolish old building Salvage recovery from old building $984,000 16,800 82,000 75,700 (12,000) Which of the following correctly states the capitalized cost of the land and the new factory building, respectively? Multiple Choice $895.500 and $1.066.000 Multiple Choice 5895,500 and $1,066,000 4 $815.000 and $1.146,500 $831.800 and $1,129,700 $907,500 and $1,054,000 On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $60,000. The cab has an expected salvage value of $4,000. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 69,000 miles the first year and 71,900 the second year . What would be the depreciation expense reported on the Year 2 income statement and the book value of the taxi, respectively, at the end of Year 2? Multiple Choice $20.612 and $19.618 $20,612 and $17610 $20,132 and $20,548 Multiple Choice $20.612 and $19.618 $20.612 and $17.618. $20,132 and $20.548 $20,132 and $18,548 On January 1, Year 1, Friedman Company purchased a truck that cost $41,000. The truck had an expected useful life of 100,000 miles over 8 years and an $8,000 salvage value. During Year 2, Friedman drove the truck 20,000 miles. The company uses the units-of-production method. The amount of depreciation expense recognized in Year 2 is: (Do not round intermediate calculations.) Multiple Choice $8.200 $6,600 $4125 Multiple Choice $8,200 $6,600 $4,125 $5.125