Shaffer Company acquires land for $77,000 cash. Additional costs are as follows. Removal of shed Filling and grading Salvage value of lumber of shed Broker commission Paving of parking lot Closing costs Shaffer will record the acquisition cost of the land as $ 300 1,500 120 1,130 10,000 560 a. $77,000. b. $78,690. c. $80,610. d. $80,370. 2. Carpino Company purchased equipment and these costs were incurred: Cash price $75,000 Sales taxes Insurance during transit Installation and testing 3,500 750 1,500 $80.750 Total costs What amount should be recorded as the cost of the equipment? a. $75,000 b. $78,500 4. 3. c. $79,250 d. $80,750 Depreciation is the process of allocating the cost of a plant asset over its useful life in a(n) a. equal and equitable manner. b. accelerated and accurate manner. c. systematic and rational manner. d. conservative market-based manner. The book value of an asset is equal to the a. asset's fair value less its historical cost. b. blue book value relied on by secondary markets. c. replacement cost of the asset. d. asset's cost less accumulated depreciation