the balance in the accumulation depreciation account represents the

A company purchased land for $82,000 cash. Real estate broker's commission was $3, 200 and $12,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the cast principle. the cost of land would be recorded at $94,000. $82,000. $85, 200. $97, 200. Goodwill can be recorded when the company acquires a good location for its business. only when there is an exchange transaction involving the purchase of an entire business. when the company has exceptional management. when customers keep returning because they are satisfied with the company's products. Don's Copy Shop bought equipment for $66,000 on January 1. 2009. Don estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2010, Don decides that the business will use the equipment for 5 years. What is the revised depreciation expense for 2010? $8, 800 $ 16, 500 $11,000 $22,000 Equipment was purchased for $78,000. Freight charges amounted to $2, 860 and there was a cost of $11, 200 for building a foundation and installing the equipment. It is estimated that the equipment will have a $2,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be $18, 012. $15, 200. $12, 788. $18, 412