Reference no: EM132912177

Question -

Q1. A company purchased new equipment for $40,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,300; sales tax paid $3,700; and installation cost, $2,700. The cost recorded for the equipment was?

Q2. A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building:

Purchase price of the land $510,000

Sale of salvaged parts already on land $20,000

Demolition of the old building $23,000

Ground-breaking ceremony (food and supplies) $2,700

Land preparation and leveling $8,400

What amount should be recorded for the purchase of the land?