Costs and Expenses The following costs are incurred by a retailer:

1. Display fi xtures in a retail store 2. Advertising 3. Merchandise for sale 4. Incorporation (i.e., legal costs, stock issue costs)

5. Cost of a franchise 6. Offi ce supplies 7. Wages and salaries 8. Computer software 9. Computer hardware Required For each cost, explain whether all of the cost or only a portion of the cost would appear as an expense on the income statement for the period in which the cost was incurred. If not all of the cost would appear on the income statement for that period, explain why not.

AppendixLO1