Bristol Company purchased land as a site for construction of a factory. Outside contractors were engaged to:
1. Construct the factory
2. Grade and pave a parking lot adjacent to the factory for the exclusive use of the factory workers. Operations at the new location began during the year and normal factory maintenance costs were incurred after production began.

Required
1. Distinguish between capital and revenue (operating) expenditures.
2. Indicate how the company should account for and report expenditures for each of the following at the time incurred and in subsequent accounting periods.
a. Purchase of land
b. Construction of factory
c. Grading and paving parking lot
d. Payment of normal factory maintenance costs
Do not discuss capitalization of interest during construction in your response.