These expenditures were incurred by Dunston Company in purchasing land: cash price $56,660; accrued taxes $5,160; attorney’s fees $2,370;

These expenditures were incurred by Dunston Company in purchasing land: cash price $56,660; accrued taxes $5,160; attorney’s fees $2,370; real estate broker’s commission $3,670; and clearing and grading $4,080.

What is the cost of the land?

The cost of the land

$

Howe Chemicals Company acquires a delivery truck at a cost of $32,200 on January 1, 2014. The truck is expected to have a salvage value of $2,510 at the end of its 5-year useful life.

Compute annual depreciation for the first and second years using the straight-line method. (Round answers to 0 decimal places, e.g. 125.)

		First Year		Second Year
Annual depreciation under straight-line method		$		$

Downs Company purchases a patent for $178,000 on January 2, 2014. Its estimated useful life is 10 years.

(a) Prepare the journal entry to record amortization expense for the first year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

(b) Show how this patent is reported on the balance sheet at the end of the first year.

Intangible Assets:
Patent		$