10-1

Land
Cash price 50,000
Accured taxes 3,000
Attorneys’s fees 2,500
Real estate broker’s commission 2,000
Clearing and grading 3,500
Cost of the land 61,000

10-2
Equipment
Cash price 30,000
sales taxes 2,100
Painting and lettering 400
Cost of truck 32,500

10-3
Maintanance expense 45
Cash 45
Eqiupment 400
Cash 400

10-4
Year Depricable cost Rate Annual depreciation
expense
2017 32,000 25% 8,000
2018 32,000 25% 8,000

10-6
Year Beginning book value Declining balance Annual depreciation
rate expense
2017 38,000 50% 19,000
2018 19,000 50% 9,500

10-9
a.
Accumulated Depreciation 41,000
Equipment 41,000

b.
 Accumulated Depreciation 37,000
Loss on Disposal of Plant 4,000
Assets
Equipment 41,000

10-7
Year Miles driven Cost per unit Annual Accumulated
depreciation Depreciation
expense
1 30,000 0.26 7,800 7,800
2 20,000 0.26 5,200 13,000

10-15
Equipment (new) 29,000
Accumulated Depreciation 30,000
Equipment (old) 61,000
Loss (31,000-24,000) 7,000
Cash 5,000
66,000 66,000