Page of 4 - ZOOM + Chapter 7 Homework Submit your answers in CANVAS before it is due Use the following to answer questions 1 - 4 T&J Company purchased land as a factory site. An old building on the property was demolished, and construction began on a new building Costs incurred during the first year are listed below: Land purchased as a factory site Building construction costs Interest cost related to the construction Demolition of old building Title investigation of land Property taxes on land (past due for last year) Property taxes on land (for the next year) Architect fees (for new building) Sale of salvaged materials $600,000 2,150,000 65,000 40,000 7,000 9,000 9,500 62,000 4,000 1. $__ How much of the "property taxes on the land for the next year" should be capitalized in the Land account? 2. How should the sale of salvaged materials be recorded? A. As an added cost of the land B. As a reduction of the cost of the land C. As an added cost to the building D. As a reduction of the cost of the building 3. $ _What amount should be recorded to the Land account? 4. $ _What amount should be recorded to the Building account? What amounts Use the following to answer questions 5-15 (Straight Line, 180% declining balance and Activity Based) T Transport purchased a new semi-trailer truck for an acquisition cost of $250,000. The company estimates the truck will have a residual value of $50,000 when they are done using it at the end of 4 years or about 500,000 miles. Answer 5-8 based on Straight line depreciation