Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate whether the
Question:
Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate whether the costs should be expensed or capitalized (meaning they are included in the cost of the plant assets on the balance sheet). (2) For costs that should be capitalized, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet.
1. Wages paid to train employees to use new equipment.
2. Invoice cost paid for new equipment.
3. Early payment discount taken on the purchase of new equipment.
4. Realtor commissions incurred on land purchased.
5. Property taxes on land incurred a year after the land was purchased.
6. Costs of oil for the truck used to deliver new equipment.
7. Costs to lay foundation for a new building.
8. Insurance on a new building during its construction.
Step by Step Answer:
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild