A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building: Purchase price of the land $ 400,000 Sale of salvaged parts already on land $ 20,000 Demolition of the old building $ 30,000 Ground-breaking ceremony (food and supplies) $ 1,500 Land preparation and leveling $ 7,500 What amount should be recorded for the purchase of the land

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.