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13. Wilson Co. purchased land as a factory site for $600,000. Wilson paid $60,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Architect's fees were $31,200. Title insurance cost $2,400, and liability insurance during construction cost $2,600. Excavation cost $10,440. The contractor was paid $2,200,000. An assessment made by the city for pavement was $6,400. Interest costs during construction were $170,000. The cost of the land that should be recorded by Wilson Co. is A. $660,480. B. $666,880. C. $669,880. D. $676,280

14. Lee Company received an HK$1,800,000 subsidy from the government to purchase manufacturing equipment on January, 2, 2015. The equipment has a cost of HK$3,000,000, a useful life a six years, and no salvage value. Lee depreciates the equipment on a straight-line basis. If Lee chooses to account for the grant as deferred revenue, the grant revenue recognized will be: A. Zero in the first year of the grant's life. B. HK$300,000 per year for the years 2015-2020. C. HK$500,000 per year for the years 2015-2020. D. HK$1,800,000 in 2015.

15. Rivera Company purchased a tooling machine on January 3, 2008 for $500,000. The machine was being depreciated on the straight-line method over an estimated useful life of 10 years, with no residual value. At the beginning of 2015, the company paid $125,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years (15 years total). What should be the depreciation expense recorded for the machine in 2015? A. $ 15,800 B. $ 34,375 C. $ 41,667 D. $ 50,000

16. Which of the following is not an intangible asset? A. Trade name B. Research costs C. development cost with economic feasibility D. Franchise

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