Question: 1. Identify the account charged for each of the following:
(a) the purchase price of a vacant lot to be used in operations and
(b) the cost of paving that same vacant lot.
2. Compute the amount recorded as the cost of a new machine given the following payments related to its purchase: gross purchase price, $700,000; sales tax, $49,000; purchase discount taken, $21,000; freight cost-terms FOB shipping point, $3,500; normal assembly costs, $3,000; cost of necessary machine platform, $2,500; cost of parts used in maintaining machine, $4,200.