The cost of the land that should be recorded by HEB Co. is a. $1,470,720. b. $1,490,320. c. $1,484,820 d. $1,494,420 e $1,480,320 On February 1, 2017, Nelson Corporation purchased a parcel of land as a factory site for $420,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2017. Costs incurred during this period are listed below: 10. Demolition of old building Architect's fees Legal fees for title investigation and purchase contract Construction costs (Salvaged materials resulting from demolition were sold for $10,000.) $ 20,000 50,000 5,000 1,400,000 Nelson should record the cost of the land and new building, respectively, as a. $445,000 and $1,405,000. b. $430,000 and $1,400,000. c. $430,000 and S1 ,450,000. d. $435,000 and $1,450,000. 11.Rosa Company purchased equipment for $530,000. Sales tax on the purchase was $25,000. Other costs incurred were freight charges of $5,000, repairs of $10,000 for damage during installation, and installation costs of $20,000. What is the cost of the equipment? a. $550,000 b. $530,000 c. $560,000 d. $580,000. e. $590,000 12.Sutherland Company purchased machinery for $1,200,000 on January 1, 2014. Straight-line depreciation has been recorded based on a $50,000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2018 at a gain of $25,000. What is the book value of the machinery and how much cash did Sutherland receive from the sale of the machinery? a. $880,556 and $905,556 b. $958,333 and $266,667 c. $880,556 and $266,667 d. $1,150,000 and $880,556 13.The activity method of depreciation a. is a variable charge approach. b. assumes that depreciation is a function of the passage of time. c. conceptually associates cost in terms of input measures. d. all of these answers are correct