gnment i Help Save & Exit Submit Check my work QS 8-2 (Algo) Assigning Costs to plant assets LO C1 Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate whether the costs should be expensed or capitalized (Meaning they are included in the cost of the plant assets on the balance sheet) (2) For costs that should be capitalized, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet. List Category 1. Insurance on building after construction is complete and it is in use, 2. Permit charges incurred by a delivery driver to transport new equipment to the warehouse. 3. Janitorial costs incurred to clean equipment. 4. Insurance on a new building during its construction. Expensed 5. Sales tax on new equipment purchased. Capitalized-Building 6. Costs to clear and grade land purchased for a new plant. Capitalized-Equipment 7. Property tax on land incurred after it was purchased. Capitalized-Land 8. Repair costs to fix new equipment damaged by the crew that unpacked it. < Prey 7 of 8 Next > search > 76°F 底 中) 11:24 AM 9/17/2021 inck Y. U G H. enter MI pause cir
gnment i Help Save & Exit Submit Check my work QS 8-2 (Algo) Assigning Costs to plant assets LO C1 Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate whether the costs should be expensed or capitalized (Meaning they are included in the cost of the plant assets on the balance sheet) (2) For costs that should be capitalized, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet. List Category 1. Insurance on building after construction is complete and it is in use, 2. Permit charges incurred by a delivery driver to transport new equipment to the warehouse. 3. Janitorial costs incurred to clean equipment. 4. Insurance on a new building during its construction. Expensed 5. Sales tax on new equipment purchased. Capitalized-Building 6. Costs to clear and grade land purchased for a new plant. Capitalized-Equipment 7. Property tax on land incurred after it was purchased. Capitalized-Land 8. Repair costs to fix new equipment damaged by the crew that unpacked it. < Prey 7 of 8 Next > search > 76°F 底 中) 11:24 AM 9/17/2021 inck Y. U G H. enter MI pause cir
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QS 8-2 (Algo) Assigning Costs to plant assets LO C1
Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate whether the costs should be expensed or
capitalized (Meaning they are included in the cost of the plant assets on the balance sheet) (2) For costs that should be capitalized,
indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet.
List
Category
1. Insurance on building after construction is complete and it is in use.
2. Permit charges incurred by a delivery driver to transport new equipment to the warehouse.
3. Janitorial costs incurred to clean equipment.
4. Insurance on a new building during its construction.
Expensed
5. Sales tax on new equipment purchased.
Capitalized-Building
6. Costs to clear and grade land purchased for a new plant.
Capitalized-Equipment
7 Property tax on land incurred after it was purchased.
Capitalized-Land
8. Repair costs to fix new equipment damaged by the crew that unpacked it.
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