Nonfinancial Assets and Their Valuation

a. The balance sheet of Tools, Inc., lists the following nonfinancial assets. Indicate which of these assets you would expect to be sold or consumed within the next fiscal year and which assets you would expect to be consumed over longer periods of time.

. Prepaid expenses.

. Inventory.

. Buildings.

. Equipment.

. Furniture.

. Intangibles.

b. Your former college roommate is planning to open a convenience store next to campus and is planning to spend a total of $135,000 to start the business. Indicate which of the following costs would be expected to provide future benefits and would be capitalized and recorded as an asset, and which costs would not be expected to provide future benefits and must be expensed in the year they are incurred:
. Furniture and fixtures.
. Insurance on the store and inventory.
. Land.
. Merchandise inventory.
. Salaries.

. Store building.
. Utilities.