Question 20 5% discount. Delivery terms were FOB shipping point and freight amounted to $4,000. ABC had to hire a specialist for policies. The first cost $2,000 and covered the equipment during transport while the other cost $12. OOO and covered the equipment during use throughout Year 1 . The equipment had a 5 year useful life and an expected salvage value of $3.000 the cost $12,000 and costs are paid in cash. Determine the amount to be capitalized in an asset account for the purchase of the equipment. $190.000 $273.000 $211,000 $194,000 $200.000 1925 Question 19 A building was purchased for $22,000. At the time of purchase, it was thought that the building would be used for 5 years and sold at the end of that time for $2.000. The building was actually sold after a total of 7 years for $3.000. Which one of these numbers represents the asset's useful life used in the calculation of depreciation expense? 2 years The useful life is not provided in the problem. 5 years 7 years