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quiz 9 - Question 1 Burke Company purchases land for...

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Question 1 Burke Company purchases land for $85,000 cash. Burke assumes $2,500 in property taxes due on the land. The title and attorney fees totaled $1,000. Burke has the land graded for $2,200. They paid $10,000 for paving of a parking lot. What amount does Burke record as the cost for the land? Answer Question 2 Arnold Company purchases a new delivery truck for $35,000. The sales taxes are $2,000. The logo of the company is painted on the side of the truck for $1,200. The truck’s annual license is $120. The truck undergoes safety testing for $220. What does Arnold record as the cost of the new truck? Answer Question 3 All leases are classified as either Answer 1
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Question 4 The balance in the Accumulated Depreciation account represents the Question 5 When estimating the useful life of an asset, accountants do not consider Answer Question 6 A company purchased factory equipment on April 1, 2010, for $48,000. It is estimated that the equipment will have a $6,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2010, is
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