The items below represent expenditures related to the construction of a new office building Cost of land.............. ..$210,00 Cost of removing old building ........ .. 1,000 Grading the site .......... 15,000 Cost of building permits 4,500 Cost of paving parking lot ........ .20,000 Legal fees relating to land purchase............2,000 Payment of delinquent property taxes...........4,500 Payment of building contractor................ 1,000,000 Interest cost incurred during construction.....40,000 Cost of fencing ............5,000 The proper balances for the Land account and the Building account should be: A. Land $217,000 and Building $1,000,000 OB Land $213,500 and Building $1,001,000 Land $222,500 and Building $1,044,500 D. Land $220,500 and Building $1,041,000 Which of the following statements is false? Acelerated depreciation methods record more depreciation expense over the life of an asset than either the straight-line method or the units- of-production method. B. The cost of an asset, its residual value, and its estimated useful life are all used in computing depreciation. OC The units-of-production method is most appropriate for an asset that wears out due to physical use. D Land is never depreciated. QUESTION 22 In 2021, Copper King, Inc. paid $4,125,000 for land with an estimated 400,000 tons of copper. Copper King plans to sell the land for $125,000 when all of the copper has been extracted. In 2021, 80,000 tons of ore were mined and sold. What is depletion for the year? CA $825,000 B. $800,000 $850,000 A credit sale of $5,275 to a customer would result in which of the following? A debit to the Accounts Receivable account and a credit to the customer's account. A credit to the Accounts Receivable account and a debit to the customer's account. A debit to the Accounts Receivable account and a credit to the Cash account. A credit to Accounts Receivable account and a debit to Sales account. A credit to Sales and a debit to Accounts Receivable account. The interest accrued on $4,800 at 7% for 75 days is: (Use 360 days a year.) $35 $336 $392 $168 $70 On January 1, 2019, Fiorentina Communications purchased a new piece of equipment that cost the company $30,000. The estimated useful life of the equipment is 5 years and its estimated residual value is $2,500. What is the depreciation expense for 2020 if Fiorentina uses the sum-of- years' digits method? $8,000 $7,333 $6,000 $5,500