vements should be depreciated over the useful life of the 27. Land impro a. land b. buildings on the land. c. land or land improvements, whichever is longer. d. land improvements. Kathy's Blooms purchased a delivery van with a $60,000 list price. The given a $6,000 cash discount by the dealer, and paid $3,000 sales ance on the van is $1,500. As a result of the purchase, by how much Blooms increase its van account? a. $60,000. b. $54,000. c. $58,500. d. $57,000. 28. company was tax. Annual insur- will Kathy's Which one of the following items is not a consideration when recording periodic de preciation expense on plant assets? a. Salvage value. b. Estimated useful life. c. Cash needed to replace the plant asset. d. Cost. 29. 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. 30. 31. 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