PART A

PART B

A truck acquired at a cost of $210,000 has an estimated residual value of $12,000, has an estimated useful life of 36,000 miles, and was driven 3,600 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost (b) The depreciation rate $ per mile (c) The units-of-activity depreciation for the year $ On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $28,000 in cash and giving a short-term note for $335,000. Legal fees paid were $1,915, delinquent taxes assumed were $12,200, and fees paid to remove an old building from the land were $16,500. Materials salvaged from the demolition of the building were sold for $5,400. A contractor was paid $1,103,500 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet