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ACCT 206-A company purchased land for $540000 cash
1.A company purchased land for $540000 cash. Real estate brokers’ commission was $20000 and$47000 was spent for demolishing an old building on the land before construction of a new buildingcould start. Under the historical cost principle, the cost of land would be recorded at$587000.$560000.$540000.$607000.2.Cullumber Company purchases land for $150000 cash. Cullumber assumes $4800 in property taxesdue on the land. The title and attorney fees totaled $3100. Cullumber has the land graded for$3400. They paid $22000 for paving of a parking lot. What amount does Cullumber record as thecost for the land?$161300.$183300.$150000.$156500.3.Carla Vista Co. purchases a new delivery truck for $64000. The sales taxes are $4200. The logo ofthe company is painted on the side of the truck for $1600. The truckâs annual license is $130. Thetruck undergoes safety testing for $280. What does Carla Vista record as the cost of the new truck?$68080.$70080.$68200.$70210.4.The interest charged on a $252000 note payable, at the rate of 6%, on a 90-day note would be (Use360 days for calculation.)$15120.$1260.$3780.$7560.
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