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A company purchased an equipment at a cost of $$10,000.$ It paid $8\%$ sales tax. It paid $$500$ to transport the equipment and $$1,500$ to install the equipment. At what amount will the equipment be recorded in the books?

a$.$ $$10,000$

b$.$ $$10,800$

c$.$ $$10,500$

d$.$ $$12,800$

A company bought a new car and assigned it a five$-$year useful life. After using it for four years, it installed a new engine, which extended the life to seven years $($the past four and three additional years$).$ The cost of the new engine:

a$.$ Is added to the car's book value

b$.$ It is recorded as a repair expense

c$.$ It is recognized as a separate asset with a useful life of three years

d$.$ None of the above

A company changes the oil and filter three times a year for all of its vehicles. At the end of $2023,$ the total incurred in oil and filter changes was $$64,000.$ This amount:

a$.$ Will be accounted for as recurrent repair costs

b$.$ Will be added to the carrying value of the respective assets

c$.$ Is recognized as a separate asset and assigned a useful life

d$.$ Is recognized as an intangible asset

After using a building for $20$ years, a company replaced the electrical wiring and water system with more modern, higher$-$quality materials. The cost was significant. That cost:

a$.$ Will be accounted for as ordinary repair expense

b$.$ Will be accounted for as extraordinary repair expense.

c$.$ Will be added to the book value of the building

d$.$ Will be recognized as a separate asset and assigned a useful life

An equipment cost $$80,000.$ The estimated lifespan is nine years and the estimated residual value is $$8,000.$ If we use the straight$-$line method, the book value of the asset at the end of its third year of useful life will be:

a$.$ $$53,333$

b$.$ $$56,000$

c$.$ $$24,000$

d$.$ $$26,667$

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