a. On February 13, Scandia Co.paid $1,650 to install a hydraulic lift and $25 for an air filter for one of its delivery trucks. Journalize the entries for thenew lift and air filter expenditures. (Capital and revenue expenditure entries)
b. Equipment acquired at thebeginning of the year at a cost of $88,000 has been estimated residual value of $6,000 an estimated useful life of 5years. Determine (a) the depreciable cost, (b) the straight-line rate, and (c) the annual straight linedepreciation. (straight- linedepreciation)
c. A building acquired at the beginning of the year at a cost of $316.000 has an estimated residual value of $48,000 and an estimated useful life of 40years. Determine (a) the depreciable cost, (b) the straight-line rate, and (c) the annual straight-line depreciation.