Chapter 9, Problem 1BP

a)

To determine

In one sentence, make a general statement summarizing the name of expenditures that qualify for inclusion in the cost of plant assets such as exercise equipment. 

b)

To determine

For the given six numbered paragraphs, indicate that items should be included in the total cost added to its Exercise equipment account. Indicate the proper accounting treatment of those items that are not included in the cost of the equipment.

c)

To determine

Compute the total cost added to the hotel’s equipment account.

d)

To determine

Prepare a journal entry at the end of the current year to record depreciation on the exercise equipment.