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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 1. Fees to perform necessary tests of new equipment. 2. Sales tax on new equipment purchased. 3. Costs to lay foundation for a new building. 4. Repair costs to fix new equipment damaged by the crew that unpacked it. 5. Janitorial costs incurred to clean equipment. 6. Construction costs for a new building to be used in operations. 7. Insurance on a new building during its construction. 8. Freight costs necessary to ship the equipment from the manufacturer to the warehouse. - Q Search < Prev CI 2 of 16 www Category Capitalized-Equipment Capitalized-Land Expensed Capitalized-Building Next > Show All Items

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 1. Fees to perform necessary tests of new equipment. 2. Sales tax on new equipment purchased. 3. Costs to lay foundation for a new building. 4. Repair costs to fix new equipment damaged by the crew that unpacked it. 5. Janitorial costs incurred to clean equipment. 6. Construction costs for a new building to be used in operations. 7. Insurance on a new building during its construction. 8. Freight costs necessary to ship the equipment from the manufacturer to the warehouse. - Q Search < Prev CI 2 of 16 www Category Capitalized-Equipment Capitalized-Land Expensed Capitalized-Building Next > Show All Items

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 1. Fees to perform necessary tests of new equipment. 2. Sales tax on new equipment purchased. 3. Costs to lay foundation for a new building. 4. Repair costs to fix new equipment damaged by the crew that unpacked it. 5. Janitorial costs incurred to clean equipment. 6. Construction costs for a new building to be used in operations. 7. Insurance on a new building during its construction. 8. Freight costs necessary to ship the equipment from the manufacturer to the warehouse. Q Search < Prev C 2 of 16 +++ Category Capitalized-Equipment Capitalized-Land Expensed Capitalized-Building Next > B Show All Items
Transcribed Image Text: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 1. Fees to perform necessary tests of new equipment. 2. Sales tax on new equipment purchased. 3. Costs to lay foundation for a new building. 4. Repair costs to fix new equipment damaged by the crew that unpacked it. 5. Janitorial costs incurred to clean equipment. 6. Construction costs for a new building to be used in operations. 7. Insurance on a new building during its construction. 8. Freight costs necessary to ship the equipment from the manufacturer to the warehouse. Q Search < Prev C 2 of 16 +++ Category Capitalized-Equipment Capitalized-Land Expensed Capitalized-Building Next > B Show All Items
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