Ch8 Exercises Exercise #1: Benedict Company incurred the following costs. 1. Sales tax on factory machinery purchased $

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Ch8 ExercisesExercise #1: Benedict Company incurred the following costs.1. Sales tax on factory machinery purchased $ 5,0002. Painting of and lettering on truck immediately upon purchase7003. Installation and testing of factory machinery 2,0004. Real estate broker’s commission on land purchased 3,5005. Insurance premium paid for first year’s insurance on new truck8806. Cost of landscaping on property purchased 7,2007. Cost of paving parking lot for new building constructed17,9008. Cost of clearing, draining, and filling land 13,3009. Architect’s fees on self-constructed building 10,000Indicate to which account Benedict would debit each of thecosts.Exercise #2: On March 1, 2022, Westmorlan Company acquired realestate on which it planned to construct a small office building.The company paid $75,000 in cash. An old warehouse on the propertywas razed at a cost of $8,600; the salvaged materials were sold for$1,700. Additional expenditures before construction began included$1,100 attorney’s fee for work concerning the land purchase, $5,000real estate broker’s fee, $7,800 architect’s fee, and $14,000 toput in driveways and a parking lot.Instructions(a) Determine the amount to be reported as the cost of theland.(b) For each cost not used in part (a), indicate the account to bedebited.Exercise #3: Linton Company purchased a delivery truck for $34,000on January 1, 2022. The truck has an expected salvage value of$2,000, and is expected to be driven 100,000 miles over itsestimated useful life of 8 years. Actual miles driven were 15,000in 2022 and 12,000 in 2023.Instructions(a) Compute depreciation expense for 2022 and 2023 using (1) thestraight-line method, (2) the units-of-activity method, and (3) thedouble-declining-balance method.(b) Assume that Linton uses the straight-line method.(1) Prepare the journal entry to record 2020 depreciation.(2) Show how the truck would be reported in the December 31, 2022,balance sheet.