Remaining Time: 41 minutes, 09 seconds, Question Completion Status: Question S. Total 12 Marks Suggested time allocation: 21 minutes Part &: Amazon.com uses automated dispatch equipment. At the beginning of the first year, Amazon purchased equipment at the cost of $500,000. Management expects the purchase. equipment to remain in service for five years with zero residual value. Through an accounting error, Amazon accidentally expensed the entire cost of equipment at the time of Required: Calculate the overstatement or understatement on the following items immediately after purchasing the equipment: a. Equipment (2 Marks) b. Profit (2 Marks) Part B Design Furniture purchased land paying $70,000 cash and signing a $300,000 loan agreement. The company paid solicitors' fees of $2,500, a survey fee of $2, 300 and $8,000 to level the land and remove an unwanted building. The company then constructed an office at the cost of $700,000. The property cost $55,000. Putting a sign re of the entrance cost $18,000 and $10,000 cost for a special lighting of the grounds. Required: a. Determine the cost of land, land improvements and building. (2 Marks) b. Which of these assets will Design Furniture depreciate? (2 Marks) Save All Answers Close Window Click Save and Submit to save and submit. Click Save All Answers to save all answers