Determine the proper treatment of each of the following expenditures:
a. Zoe purchases land costing $8,000. During the current year, she pays $2,000 to have utilities and sewer lines installed on the property. Zoe also pays $600 in interest on the loan used to obtain the land and $300 in property taxes on the land.
b. On August 2, Carruth Corporation pays $11,000 for a 2-year fire insurance policy on its manufacturing facility.
c. The Freeborn Partnership purchases a rental property costing $125,000. Before it rents out the building, Freeborn repaints it at a cost of $2,000 and spends $1,200 on minor repairs. After the property is rented, a pipe bursts, requiring $2,000 in repairs.
d. Aqua Robotics, Inc., purchases and pays for supplies costing $1,400 on December 26. As of December 31, the company has not used $1,200 worth of the supplies.