106. Indicate whether each of the following statements is true or false.
_____ a) Sales taxes paid on the purchase of equipment would be expensed in the year of the purchase.
_____ b) Real estate fees and attorney's fees related to the purchase of a building would be added to the cost of the building.
_____ c) Payment of a fine for improper burning of a demolished building would be added to the land account.
_____ d) Delivery charges on equipment would be added to the equipment account.
_____ e) The matching concept requires that plant assets be recorded at the amount paid for the assets.
107. On January 1, 2011, Williamson Co. purchased a machine for $50,000. Williamson estimated the useful life of the machine to be 10 years and the salvage value to be $10,000. Indicate whether each of the following statements is true or false.
_____ a) Depreciation expense for 2011 under the straight-line method would be $5,000.
_____ b) Depreciation expense for 2011 under the double declining method would be $10,000.
_____ c) The accumulated depreciation at the end of 2013 under the straight-line method would be $12,000.
_____ d) The accumulated depreciation at the end of 2013 under the double declining method would be $24,000.
_____ e) The book value of the machine under both the double declining method and the straight-line method at the end of 10 years would be $10,000.