January 1, 2013 and it has a useful life of 40 years. The price of the
building included land improvements costing £600,000 and personal
property costing £750,000. The useful lives of the land improvements
and the personal property are 10 years and 5 years, respectively. Salem
Company uses component depreciation, and the company uses
straight-line depreciation for other similar assets. What is the net
amount reported for the building on Salem Company’s December 31,
2013 statement of financial position?
£7,573,750
£6,483,750
£7,800,000
£7,665,000
5- Multiple Choice Question 77
Yocum Company purchased equipment on January 1 at a list price of
$100,000, with credit terms 2/10, n/30. Payment was made within the
discount period and Yocum was given a $2,000 cash discount. Yocum
paid $5,000 sales tax on the equipment, and paid installation charges
of $1,760. Prior to installation, Yocum paid $4,000 to pour a concrete
slab on which to place the equipment. What is the total cost of the new
equipment?
$104,760
$108,760
$110,760
$101,000
6- Multiple Choice Question 98