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Question 7

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On its 31/12/2020 Balance Sheet, Star company lists a Machine with cost of $ 70,000, and net book value of $51,250. If the equipment has a useful life of 8 years, and a salvage value of $10,000, and Star uses the SLM to calculate depreciation, when was the machine purchased?

a.

All answers are wrong

b.

On 1/4/2018

c.

On 1/9/2018

d.

On 1/1/2018

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Question 8

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Farah Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $70,000; brokers fees, $4,000; title search and other legal fees, $5,000; demolition of an old building on the property, $5,700; accumulated property taxes, $1,200; digging foundation for the road, $3,000; laying and paving driveway, $25,000; lighting $7,500; signs, $1,500. Required: Calculate the cost of the Land??