Question 2

Carey Company buys land for $50,000 on 12/31/11. As of 3/31/12, the land has appreciated in value to $50,700. On 12/31/12, the land has an appraised value of 51,800. By what amount should the Land account be increased in 2012?

A.) $700

B.) $0

C.) $1,100

D.) $1,800

Question 3

A company purchased factory equipment on April 1, 2012 for $80,000. It is estimated that the equipment will have an $10,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2012 is

A.) $7,000

B.) $8,000

C.) $5,250

D.) $6,000