9. Identify how each of the items would be treated using the following: E – expe

ID: 2591659 • Letter: 9

Question

9. Identify how each of the items would be treated using the following:

E – expense

CL – capitalize in land account

CE – capitalize in equipment

CLI – capitalize in land improvements

CB – capitalize in building account

Expenditure that increases number of units produced by equipment by 20%____.

Cost of razing an old building on a recently purchased tract of land ___________

Architectural fees for new building________________.

Satisfy back taxes on land recently purchased ______________________.

Install parking lot on land under construction ________________________.

Perform maintenance on equipment _______________________________.

Avoidable interest associated with construction of building______________.

Pay shipping and insurance costs while in transit for a new machine _________.

Installation costs and testing of new factory equipment _______________.

Expenditure that extends useful life of factory equipment by two years___________.

Expenditure that increases number of units produced by equipment by 20%_CE capitalise in equipment.

Cost of razing an old building on a recently purchased tract of land _CL capitalise in land account

Architectural fees for new building__CB capitalise in building account.

Satisfy back taxes on land recently purchased __CL capitalise in land account.

Install parking lot on land under construction _CLI capitalise in land improvements.

Perform maintenance on equipment __E expense.

Avoidable interest associated with construction of building__CB capitalise in building account.

Pay shipping and insurance costs while in transit for a new machine __CE capitalise in equipment.

Installation costs and testing of new factory equipment _____CE capitalise in equipment.

Expenditure that extends useful life of factory equipment by two years__CE capitalise in equipment.

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