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1_ Corp purchases Equipment from a seller for a price of $5m. Corp pays attorney fees of $300k to secure title, as a part of the transaction; pays back taxes of $100k in order to begin operating the equipment in the state; pays a recurring annual $500k insurance premium to insure the Equipment; subscribes to $250k annual payments for warranty; and salvages scrap materials from the equipment that it then sells for $50k in Cash. What would be the initial carrying value of the Equipment on Corp's books (i.e., after all these events but before any subsequent depreciation expense).

	A.	$5.4m
	B.	$5.35m
	C	$6.1m
	D	$5.6m
	E	None of the other answers

2) Corp acquires an abandoned factory in Culver City, along with the two acres of land the factory is on, for a total of $10m. The company had no intention to use the factory, so it tears down the factory and sells the scraps for $1m. Assuming the company did not have anything in its Land account before this transaction and that the seller paid for all related expenses (e.g., legal expense) in this transaction, what balance should Corp have for its Land account after this acquisition?

A		None of the other answers
B		$10m
C		Not enough information
D		$11m
E		$9m

3) On January 1, 2017, TopangaCo. bought a machine for $50k. On January 1, 2022, TopangaCo. sold the machine and recorded a $3k Gain upon sale. The company only had this machine in it's Equipment account, and had an Accumulated Depreciation balance of $15k at the time of the sale. What was the sale price of the machine?

A		$38k
B		$35k
C		Not enough information
D		None of the other answers.
E		$53k

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